Supply Chain Management (SCM) has been a popular buzzword since the mid 1990s, and has had many variations of definition by many experts. It's now buzzed over to Canbide and is the topic of debate at the weekly analysts' meeting. What is your definition of Supply Chain Management?
There are various definitions available such as it being a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Thus supply chains exist in both service and manufacturing organizations. The complexity of the chain may vary greatly from industry to industry and firm to firm but is the same in overall concept. And it has three general components of:
1 - Demand Fulfillment-The objective of the demand fulfillment process is to provide fast, accurate, and reliable delivery-date responses to customer orders. Demand Fulfillment is mainly an execution-level sub-process that includes order capturing, customer verification, order promising, backlogs management, and order fulfillment.
2 Demand Planning-The objective of the demand planning process is to understand customers' buying patterns and develop aggregate, collaborative forecasts. Demand planning is by definition a planning process, which feeds into the supply planning process, and subsequently the demand fulfillment process. Demand planning involve long-term, intermediate-term and short-term time horizons.
3 Supply Planning-The objective of the Supply Planning process is to optimally position enterprise resources to meet demand. This is a planning-level sub-process that spans the strategic and tactical supply-planning processes. Long-term planning, inventory planning, distribution planning, collaborative procurement, transportation planning and supply allocation are all part of this sub-process
Lastly there are major challenges:
Making products or services available in a cost-effective manner with the desired quality.
Making sure information is available easily to run the supply chain
However, your insight/perspective I find educational/inspiring thus I am forwarding this question to you for your perspective on the task if you have time and availability.
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In a layman term, supply chain management engulfs all those activities which starts from procurement of raw materials and basic inputs and then extends into production of intermediate and finished products and services as well as distribution and after sales activities/services of these products and services. Therefore, all those activities in an organization which are geared towards making the whole process of procurement, manufacturing and distribution efficient and smoother can be bundled into supply chain management activities.
Even though Supply Chain management seems to be most concerned with issues like inventory management, it incorporates many more functions in it and extends its influence on other important issues such as purchase function, distribution function, after sales service, etc. Therefore, rather than acting as a stand alone function only concerned with inventory management, it encompasses all the related functions at the operational level which ensure that the whole process, from procurement to delivery and after sales service, is completed in a smooth, cost effective and efficient manner with utmost customer satisfaction.
In today's dynamic, fast changing and customer satisfaction focused organizations, Supply Chain Management has emerged as one of the most important activities in an organization and has managed to carve out a niche for itself in the strategic planning ...
Supply Chain Management