Reengineering Of The Organizational Structure - Effective Supply Chain Management The Only Way

" Flexibility "and " speed " are two most critical successful factors for companies in the 21st century. Judging from the popularity and amount of discussions and publication about ERP (Enterprise Resource Planning) and SCM (Supply Chain Management), we can almost certain that how competition, corporation, teamwork, and a dynamic market has shaped out our way of thinking. Competition between companies has changed to competition in supply chains. How quickly one company is able to deliver customer needs with good quality and low cost has become the rule of survival. And this survival scheme results in a lot of changes not only in management model but also resources and determination.Supply chain management, thanks to its significant results, has been recognized and widely adopted by many industries. However, the results are varied among companies depending on readiness before and after implementation. Some focus on logistics and distribution channels, spending most their energy in processes connecting outside the companies instead of internal process operation. Resulting from this is inefficient supply chain that sometimes causes fundamental doubt about SCM. Other companies put an equal sign between SCM and IT technology, believing that when ERP impletion is completed, SCM benefit shall be generated as part of the output reports. Of course, they all fail and fail terribly. Supply chain management cannot success without a process change and, along with this, an organization structure change.This research focuses on the process and changes during the implementation of a supply chain management system, the importance and essence of this modification, the result of not doing so, and, of course, with basic review and theory of SCM. In the end, this research will provide a map out a process of how to link between SCM, ERP, BPR, and tool sets like Six Sigma. One example will be provided from GE Medical Systems which underwent SCM, process re-engineering and organization re-structure based on its global SCM program.