| The percentage of output from service economy | | | | also can be used to communicate with other |
| indicates whether a country is a developed country | | | | partners. The core of SCM software is inventory or |
| or a developing one. Developed countries often | | | | demand forecast developed from the inventory |
| posses healthy and strong service industry. The | | | | management practice. |
| backbone of many service operations are Supply | | | | The advantages of SCM are enormous - increased |
| Chain Management or SCM. If you frequent Wal-Mart | | | | coordination between suppliers, distributors and |
| and wonder how they can offer quality products at | | | | partners, enhanced customer relationship, and |
| low price, you'll eventually lead to a term "supply | | | | reduced cost of operation. |
| chain management". In simpler terms, supply chain | | | | For a company in medical services that distributes |
| management generally makes a business run | | | | medical and surgical supplies to medical practitioners |
| smoother by cooperation across different functional | | | | and home health care industry, a supply chain |
| departments in an extended enterprise environment | | | | management system will coordinate with the |
| that includes the company, it's suppliers and | | | | manufacturers of the medical suppliers, the retailers, |
| distributors. Wal-Mart has been a pioneer in supply | | | | the logistical department of major hospitals. By |
| chain management. | | | | keeping tracking of the usage patterns, the supply |
| A supply chain system consists of supply chain | | | | chain management system will be able to forecast |
| management software, hardware to run the | | | | the demand of medical/surgical products by seasons, |
| systems, planning, execution and o processes etc.. | | | | by regions and by customer types. This will save the |
| The implementation of supply chain is a major | | | | inventory cost for the medical service company and |
| undertaken, however the success execution of | | | | major hospitals that order the medical supplies. |
| supply chain management has the ability to create a | | | | For a large retailer like Wal-Mart, it has many regional |
| sustainable competitive advantage over the | | | | distribution centers, a supply chain management |
| competitors. The implementation of supply chain | | | | system will effective coordinate between suppliers of |
| involves with the strategic planning, system analysis, | | | | clothes, paper products and Wal-Mart's retail stores |
| supply chain implementation and supply chain | | | | to reduce the inventory cost. Wal-Mart is able to |
| coordination. Generally, SCM software contains | | | | pass the saving of inventory cost to customers so it |
| features that allow companies to manage inventory, | | | | can offer lower prices for many everyday products. |
| plan production, track sales, handle payments, and | | | | The backbone of many service operations are Supply |
| see where their shipments are. All of this information | | | | Chain Management or SCM. |