International Journal of Applied Management (ISSN: 1742-2590) Volume 2 Issue 1
Dr. Andrew L S Goh
Division of Business
University of South Australia
With the advent of the knowledge economy, k nowledge management (KM) practices are often regarded as having a significant impact on business performance. As a result, companies are now eagerly leveraging from the competitive advantage offered by KM tools to manage their supply chains. In recent years, the use of supply chain management (SCM) solutions has become more prevalent in corporate sectors. However, as to how SCM solutions can be beneficial to businesses; and how SCM adoption should be evaluated have yet to be addressed.
This article first outlines the digital challenge facing today’s businesses and discusses the KM issues relating to SCM solutions. It then describes the five components of SCM and highlights the management aspects of a supply chain that merit focused attention. Next, it turns to the workflow for effective SCM adoption to achieve better returns on investments. Based on a ranking protocol, an assessment methodology is proposed, using four levels of adoption, to evaluate the five components of SCM. An evaluative sample is shown to illustrate the results arising from the assessment methodology. In conclusion, the success of SCM requires deliberate efforts in understanding the challenges of SCM adoption, identifying suitable SCM tools; and then designing appropriate SCM solutions to deliver the best value for customers.
Keywords: Knowledge economy, knowledge management, i nformation and communication technologies, supply chain management, assessment methodology.