Supply Chain Management and the SIMON system.

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Supply Chain Management and the SIMON system

        Supply chain management can be defined as the synchronization of a firm’s processes and the processes of their suppliers to match the flow of materials, services and information with the demand of customers. The importance of supply chain management to inventory to control is immeasurable. When a company and their suppliers are working together and synchronizing their systems according to demand, inventory can be controlled and there will rarely be a case of excess inventory or a stock out. Supply chain management allows companies to implement a “just in time” inventory system which is a coordinated approach between a company and their suppliers that continuously reduces inventory while also improving the quality of the product.

        There are many operational advantages of using the Supplier Inventory Management Order Network (SIMON) system. The major benefit is the $20 million Shell Chemical Company created in for its customers and itself by using the SIMON system. Also, SCC has increased the inventory returns for their customers by 15% by using the SIMON system. The SIMON system also, “enables suppliers to generate demand forecasts, calculate safety stock, track the status of shipments, and generate a re-supply plan for its customers.” This advantage cannot be offered by any other Supply Chain Management system available today.

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SIMON is also fully customizable by SCC’s customers; the service differentiates SCC to its customers. Because the customer can configure the system however they want it, they are able to forecast better according to the exact cycle of the particular customer. This gives the SIMON system a great competitive advantage over other programs that do not have this option. This customization also allows the suppliers to make better decisions and better production planning for the future. SCC can deliver the most value for the consumer’s money with SIMON platform.

ARTICLE: Supply on Demand –

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