SUPPLY CHAIN MANAGEMENT

Intro….  Supply Chain Management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996).businessesproductservice  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 (supply chain).raw materialssupply chain

APICS Dictionary  SCM  "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."

definition  “Effective supply chain management can cut costs, improve service and enhance revenues and that’s just the beginning” Prof. P.Metz, MIT  MIT Survey: Implementation of ‘supply chain management’ in US resulted in:  50% reduction in inventory  40% improvement in on-time deliveries  27% reduction in order cycle time  Nine-fold reduction in out of stocks

Diagram illustration of SCM

 Suppliers  Manufacturing  1,2,3  SCM Logistic,  Cost,  Channel of Distribution,  End-user

Important ** Supply chain management is essential to company success and customer satisfaction. ** generated the over all value. **Supply chain management (SCM) is a business practice that aims to improve the way a business sources its raw materials, and delivers it to end users.business  **Plan Planning is the first and most important strategic function in SCM. Planning involves developing a set of metrics that enables the company to maximize efficiency by monitoring the flow of materials through the supply chain.

 Source: Sourcing involves studying supplier competencies and selecting one, based on one or more criteria. When a supplier is chosen. **prepared to deliver goods and services. **in SCM develop policies for pricing, delivery and payment with each supplier, and monitor and improve relationships by using metrics.relationships Manufacture: **SCM managers schedule activities for manufacturing, quality testing, packaging and shipping by coordinating the actions of each and every entity involved in the various related processes. **the most use of the metric system, enabling managers to measure quality, output of production and productivity of workers.

Deliver **SCM managers in the delivery process must synchronize activities of partner businesses involved in the transportation of goods. ** For the product to reach their customers in time, their carriage must be seamless and without incident, each and every time.  Return ** efficient system for returns of defective goods. **Defects and excesses are causes for concern for a business's consumers and clients, and as such, accepting goods back ensures future business relationships.