Strategic Supply Chain Model Paper

Phase I: Strategic Supply Chain Model Paper

The Oklahoma Gas and Electric internal Supply Chain is an important part of the work process in order to keep OGE working efficiently. Inventory in the form of spare parts needed to maintain the internal infrastructure of OGE range from modular LAN jacks to 110 ft. wooden poles. Although in comparison of size of the size of the parts there is a dramatic range in size, each one is important. Supply Chain Management helps decide the need for locations to store the parts, along with the correct amount of inventory. This is the reason that Supply Chain Management is used, to ensure the timely repair of OGE infrastructure. Supply chain management is a critical part of maintaining the correct inventory, at the correct locations that OGE needs.

OGE uses supply chain management to oversee key issues like purchasing, inbound logistics, operations, warehouse management, outbound logistics, and demand management to oversee OGE inventory and stockpiles. Supply chain management defined as the oversight of materials, information, and finances as they move in a process from supplier to OGE and then issued to the technicians and electrical lineman to repair. Supply chain management at OGE involves coordinating and integrating these flows of materials and supplies both within the company and among the vendors that OGE uses. Very rarely does OGE sale inventory directly to the customer, instead uses the inventory of parts to ensure reliability of the delivery of power to the customer. Delivery of electric power is how OGE collects its revenue, this ensures that supply chain management techniques are used , ensuring that the lowest cost methodology is used and passed on to its customers.

OGE uses SAP...

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... the materials to the internal customer.

At first glance the OGE Supply Chain System seems to be an archaic system from the dark ages, but it is used to track costs instantly. The use of state of the art database software SAP , along with developed processes of the supply chain at OGE allows management to track costs at almost a real time basis.

Works Cited

David Simchi-Levi, Philip Kaminsky, and Edith Simchi-Levi, Designing and Managing the Supply Chain (2nd ed.), E-text Edition, OSC/300 Strategic Supply Chain Management – University of Phoenix, McGraw-Hill, 2003 New York, NY.

Barrat, C., Burnett, K., & Whitehead, M. (2002, June 6). A to Z of supply management. Supply Management, 7(12) , 30-31 .

Bernhard, F. J., & Vittori, W. (2004, July/August). Predictive sourcing: The straight path to profitability. Supply Chain Management Review, 8(5) , 58 .