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Supply chain management systems streamline the processes of manufacturing, warehousing, inventory
control, planning, shipping and logistics and provide one software system that also allows business to
decide which products to build and when based on orders, capacity and resources. Companies like
Brunswick and Whirlpool are using SCM systems to replace aging homegrown systems that run individual
pieces of their supply chains. The new SCM systems use business analytics to help the companies bump
sales by looking at the data that the systems generate. Whirlpool is replacing their current system, which
is costly to maintain, with an SCM system that they plan to use to coordinate inventory numbers overseas.
The company is planning to extend its SAP planning application to Ikea in Europe letting Whirlpool
model Ikea¶s distribution centers in the planning software, treating them as if they were Whirlpool¶s. This
will allow Whirlpool to closely align the stock Ikea has on hand with forecasts and demand, helping to
meet Ikea¶s instock rate of 98 percent.

Controlling the supply chain can affect both the bottom and top lines, generating revenue for the
companies. Companies are not adopting new SCM systems simply to streamline the process, but they¶re
also using the systems to generate revenue and move to customer-oriented services. According to the text,
SCM systems provide business value because ³If a company¶s supply shain is executing really well, then it
can start focusing on ways to help retailers sell. And then it can start looking at optimizing revenue.´

Abby Clemons



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I would think that Brunswick approach to SCM is of more on primary level because they are still trying to
streamline its product line and its manufacturing operations. Thus there basic effort is to avoid all costly
bottlenecks observed during the manufacturing process. But basically to increase the efficiency from
manufacturing all the way to vending. Whereas, Whirlpool is utilising the system for a more mature
outlook of cutting costs at various distribution level. Its trying to use it to cut down of the number of
vendors using the system but at the same time using the resources to make the product available at all
supported retailers. Thus, I would think though Brunswick¶s approach is not much different but it still has
to reach the level when company realises the other expect of SCM which is cutting cost.

   

 
   
 
 
 
 
 
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I would say that the prime example of re engineering the whole supply chain was Walmart. It was the
company that redefined the whole concept of supply chain. Other companies include Conagra, to all retail
chain from Target to bestbuy, Apple, Ford, Honda, toyota. I would there is hardly a company at this point
who is in retailing and hasn¶t re engineered its operations to work efficiently using SCM.