Introduction
If your company makes a product from parts purchased from suppliers, and those products are sold to customers, then you have a supply chain. Some supply chains are simple, while others are rather complicated. The complexity of the supply chain will vary with the size of
the business and the intricacy and numbers of items that are manufactured. SCM is the
acronym for the term “Supply Chain Management”.
Supply Chain Management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end
customer.Supply Chain Management spans all movement and storage of raw materials,
work in process inventory, and finished goods from point of origin to point of consumption.
What is supply chain management?
Supply chain management (SCM) is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
supply chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain. Supply-chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.
Functions of supply chain management
Supply chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. As organizations strive to focus on core competencies and become more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations. Less control and more supply chain partners lead to the creation of the concept of supply chain management. The purpose of supply chain management is to improve trust and collaboration among supply chain partners thus improving inventory visibility and the velocity of inventory movement.
5 basic components of Supply Chain Management
1.Plan
The first stage in supply chain management is known as plan. A plan or strategy must be developed to address how a given good or service will meet the needs of the customers. A significant portion of the strategy should focus on planning a profitable supply chain.
2.Develop
2.Develop
Develop is the next stage in supply chain management. It involves building a strong relationship with suppliers of the raw materials needed in making the product the company delivers. This phase involves not only identifying reliable suppliers but also planning methods for shipping, delivery, and payment.
3.Make
At the third stage, make, the product is manufactured, tested, packaged, and scheduled for delivery. This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery.
4.Deliver
Then, at the logistics phase, customer orders are received and delivery of the goods is planned. This fourth stage of supply chain management stage is aptly named deliver.
5.Return
The final stage of supply chain management is called return. As the name suggests, during this stage, customers may return defective products. The company will also address customer questions in this stage.
Key Features of Supply Chain Management
Supply chain softwares are robust, feature-rich technology softwares that enhance operations from end-to-end.
Today’s popular supply chain softwares can help companies achieve and maintain a competitive edge by empowering them to streamline and enhance their most important supply chain operations from start to finish. With supply chain software in place, organizations can maximize cost-efficiency, increase productivity, and give their bottom line a big boost.
This functionality is designed to fully automate and support supply chain processes from end-to-end, and includes:
3.Make
At the third stage, make, the product is manufactured, tested, packaged, and scheduled for delivery. This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery.
4.Deliver
Then, at the logistics phase, customer orders are received and delivery of the goods is planned. This fourth stage of supply chain management stage is aptly named deliver.
5.Return
The final stage of supply chain management is called return. As the name suggests, during this stage, customers may return defective products. The company will also address customer questions in this stage.
Key Features of Supply Chain Management
Supply chain softwares are robust, feature-rich technology softwares that enhance operations from end-to-end.
Today’s popular supply chain softwares can help companies achieve and maintain a competitive edge by empowering them to streamline and enhance their most important supply chain operations from start to finish. With supply chain software in place, organizations can maximize cost-efficiency, increase productivity, and give their bottom line a big boost.
This functionality is designed to fully automate and support supply chain processes from end-to-end, and includes:
Inventory Management
With a supply chain package, companies can significantly improve the way they track and manage their supplies of raw materials and components needed for production, finished goods to satisfy open sales orders, and spare parts required for field service and support. This eliminates excess and waste, frees up valuable real estate for other important purposes, and minimizes related storage costs.
Order Management
Supply chain software can dramatically accelerate the execution of the entire order-to-delivery cycle by helping companies to more productively generate and track sales orders. Supply chain also enables the dynamic scheduling of supplier deliveries to more effectively meet demand, and more rapid creation of pricing and product configurations.
Procurement
All activities and tasks associated with sourcing, purchasing, and payables can be fully automated and streamlined across a company’s entire supplier network with a supply chain software package. As a result, businesses can build stronger relationships with vendors, better assess and manage their performance, and improve negotiations to leverage volume or bulk discounts and other cost-cutting measures.
Logistics
As companies expand globally, their supply chains become more and more complex. This makes the coordination of the numerous warehouses and transportation channels involved quite a challenging endeavor without supply chain software in place. With supply chain, businesses can improve on-time delivery performance and boost customer satisfaction by achieving complete visibility into how finished goods are stored and distributed, regardless of the number of facilities or partners that participate.
Forecasting and Planning
With supply chain software, organizations can more accurately anticipate customer demand, and plan their procurement and production processes accordingly. As a result, they can avoid unnecessary purchases of raw-materials, eliminate manufacturing over-runs, and prevent the need to store excess finished goods, or slash prices to move products off of warehouse shelves.
Return Management
Supply chain software can simplify and accelerate the inspection and handling of defective or broken goods - on both the buy and sell side of the business - and automate the processing of claims with suppliers and distributors, as well as insurance companies.
Many supply chain offerings also include add-on options or modules designed to enhance related activities. Through these features, support is provided for a variety of important processes such as contract management, product lifecycle management, capital asset management ,and more.
Advantages of Supply Chain Management
Supply chain software provides numerous advantages to organizations, empowering them to improve operations from end-to-end.
Key Benefits of Supply Chain Management Software:
Improve Your Supply Chain Network
Minimized Delays
Enhanced Collaboration
Reduced Costs.
Disadvantages of Supply Chain Management
The biggest disadvantage of global supply chain management is the heavy investment of time, money, and resources needed to implement and overlook the supply chain.
conclusion
Supply Chain Management (SCM) involves joint collaboration between outsourcing partners, suppliers, and customers. It comprises the transformation of goods from raw materials through to the delivery of the finished product; it also includes the management of key information flows. SCM involves the integration of these activities and aims to improve relationships between the various parties, while achieving a sustainable competitive advantage through high quality and lower cost products. SCM is closely linked with enterprise resource planning and electronic commerce systems.
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With a supply chain package, companies can significantly improve the way they track and manage their supplies of raw materials and components needed for production, finished goods to satisfy open sales orders, and spare parts required for field service and support. This eliminates excess and waste, frees up valuable real estate for other important purposes, and minimizes related storage costs.
Order Management
Supply chain software can dramatically accelerate the execution of the entire order-to-delivery cycle by helping companies to more productively generate and track sales orders. Supply chain also enables the dynamic scheduling of supplier deliveries to more effectively meet demand, and more rapid creation of pricing and product configurations.
Procurement
All activities and tasks associated with sourcing, purchasing, and payables can be fully automated and streamlined across a company’s entire supplier network with a supply chain software package. As a result, businesses can build stronger relationships with vendors, better assess and manage their performance, and improve negotiations to leverage volume or bulk discounts and other cost-cutting measures.
Logistics
As companies expand globally, their supply chains become more and more complex. This makes the coordination of the numerous warehouses and transportation channels involved quite a challenging endeavor without supply chain software in place. With supply chain, businesses can improve on-time delivery performance and boost customer satisfaction by achieving complete visibility into how finished goods are stored and distributed, regardless of the number of facilities or partners that participate.
Forecasting and Planning
With supply chain software, organizations can more accurately anticipate customer demand, and plan their procurement and production processes accordingly. As a result, they can avoid unnecessary purchases of raw-materials, eliminate manufacturing over-runs, and prevent the need to store excess finished goods, or slash prices to move products off of warehouse shelves.
Return Management
Supply chain software can simplify and accelerate the inspection and handling of defective or broken goods - on both the buy and sell side of the business - and automate the processing of claims with suppliers and distributors, as well as insurance companies.
Many supply chain offerings also include add-on options or modules designed to enhance related activities. Through these features, support is provided for a variety of important processes such as contract management, product lifecycle management, capital asset management ,and more.
Advantages of Supply Chain Management
Supply chain software provides numerous advantages to organizations, empowering them to improve operations from end-to-end.
Key Benefits of Supply Chain Management Software:
Improve Your Supply Chain Network
Minimized Delays
Enhanced Collaboration
Reduced Costs.
Disadvantages of Supply Chain Management
The biggest disadvantage of global supply chain management is the heavy investment of time, money, and resources needed to implement and overlook the supply chain.
conclusion
Supply Chain Management (SCM) involves joint collaboration between outsourcing partners, suppliers, and customers. It comprises the transformation of goods from raw materials through to the delivery of the finished product; it also includes the management of key information flows. SCM involves the integration of these activities and aims to improve relationships between the various parties, while achieving a sustainable competitive advantage through high quality and lower cost products. SCM is closely linked with enterprise resource planning and electronic commerce systems.
#collegesyuen #syuencollege #hotelstudents #e-commerce
Reference:
- 2018 Association of Modern Technologies Professionals, http://www.itinfo.am/eng/supply-chain-management
- cf. Andreas Wieland, Carl Marcus Wallenburg (2011): Supply-Chain-Management in stürmischen Zeiten. Berlin.https://en.wikipedia.org/wiki/Supply_chain_management
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