Integration of Supply Chain Management Essay Example | Topics and Well Written Essays - 750 words

Integration of Supply Chain Management - Essay Example The article â€Å"Integration of Supply Chain Management with Internet and Enterprise Resources Planning (ERP) Systems: Case Study† focuses on the business environment of Dell Computers (Ghani, Zainuddin, Ghani 97). The articles states that Technology brings in countless advantages to the business environment. Further, the business environment includes businesses having a supply chain management strategy. Specifically the technology used in enhancing the supply chain management process is grounded on the management of information technology. Management harnesses the many benefits of information technology to enhance its supply chain management process. Specifically, information technology is synonymous with the use of the internet or Enterprise Resource Planning (ERP) systems. To determine the current status of the company’s supply chain activities. The same article proposes that the environment of business is grounded on generating net profits. To generate net profits, the company must sell its products or services. In turn, the company must deduct the total amount of costs of purchasing or manufacturing the salable products and services. The excess of the revenues or sales over the cost of sales or cost of production is the company’s gross profit. Next, the business must deduct the marketing expenses and the administrative expenses from the gross profit to generate a net profit figure. The same article emphasizes that the supply chain management strategy affects the revenue amount. The company will generate more revenues if the company’s supply chain management activities ensure the delivery of the company’s products and services to the current and prospective customers. A decline in the supply chain management’s delivery system precipitates to lower revenues. Lower revenues will create lower gross profits. A lower gross profit will trigger a lower net profit. A slow supply chain management system will create a delay in the delivery of