TABLE OF CONTENTS
CHAPTER-1
INTRODUCTION................................................................................... 2
Supply Chain Management .................................................................................................... 2
CHAPTER-1
INTRODUCTION
Supply Chain Management
Supply chain management (SCM) is the management of the flow of goods, flow
of cash, and flow of information internally and externally of a company or a
group of companies that share the same value chain.
It is comprised of the movement and storage of raw materials, work-in-process
inventory, and finished goods from point of origin to point of consumption; cash or
credit in purchasing or selling of products or services; as well as the information that
conducts those activities, such as orders, demand forecast, or even picking lists.
Interconnected or interlinked networks, channels and node businesses are involved 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."
SCM draws heavily from the areas of operations management, logistics, procurement,
and information technology, and strives for an integrated approach.
The term "supply chain management" entered the public domain when Keith Oliver, a
consultant at Booz Allen Hamilton (now Booz & Company), used it in an interview
for the Financial Times in 1982. The term was slow to take hold. It gained currency in
the mid-1990s, when a flurry of articles and books came out on the subject. In the late
1990s it rose to prominence as a management buzzword, and operations managers
began to use it in their titles with increasing regularity.[5][6][7]
Commonly accepted definitions of supply chain management include:
The management of upstream and downstream value-added flows of materials,
final goods, and related information among suppliers, company, resellers, and
final consumers
The systematic, strategic coordination of traditional business functions and
tactics across all business functions within a particular company and across
businesses within the supply chain, for the purposes of improving the longterm performance of the individual companies and the supply chain as a
whole.
A definition is given by Hines (2004:p76): "Supply chain strategies require a
total systems view of the links in the chain that work together efficiently to
create customer satisfaction at the end point of delivery to the consumer. As a
consequence, costs must be lowered throughout the chain by driving out
unnecessary expenses, movements, and handling. The main focus is turned to
efficiency and added value, or the end-user's perception of value. Efficiency
must be increased, and bottlenecks removed. The measurement of
performance focuses on total system efficiency and the equitable monetary
reward distribution to those within the supply chain. The supply chain system
must be responsive to customer requirements."[9]
The integration of key business processes across the supply chain for the
purpose of creating value for customers and stakeholders (Lambert, 2008)[10]
According
to
the Council
of
Supply
Chain
Management
Professionals (CSCMP), supply chain management encompasses the planning
and management of all activities involved in sourcing, procurement,
conversion, and logistics management. It also includes coordination and
collaboration with channel partners, which may be suppliers,intermediaries,
third-party service providers, or customers. Supply chain management
integrates supply and demandmanagement within and across companies. More
recently, the loosely coupled, self-organizing network of businesses that
cooperate to provide product and service offerings has been called
the Extended Enterprise.
Supply Chain Management (SCM) is the management of the relationship
between the supplier's supplier and the customer's customer through the
supply chain participants (Distributor/Wholesaler and Retailer) between them,
mainly using information flow and logistics activities to gain Competitive
advantage and customer satisfaction.
A supply chain, as opposed to supply chain management, is a set of organizations
directly linked by one or more upstream and downstream flows of products, services,
finances, or information from a source to a customer. Supply chain management is the
management of such a chain.[8]
Supply chain management software includes tools or modules used to execute supply
chain transactions, manage supplier relationships, and control associated business
processes.
Supply chain event management (SCEM) considers all possible events and factors
that can disrupt a supply chain. With SCEM, possible scenarios can be created and
solutions devised.
In many cases the supply chain includes the collection of goods after consumer use
for recycling. Including third-party logistics or other gathering agencies as part of the
RM re-patriation process is a way of illustrating the new endgame strategy.
