This posting defines supply chain management and describes the essential components of a typical supply chain management process and its components using examples.
Managers have a responsibility of balancing customer services and readily available inventories. In order to assure that this process is executed in the most accurate way possible, many mangers rely on forecasting to provide the basic inputs for the planning and controlling of all functional areas, including logistics, marketing, production and finance (Stevenson, 2007).
1. Define supply chain management.
Supply chain management encompasses the oversight of materials, information, and finances as they move in a process from supplier to manufacturer, wholesaler, retailer, and consumer. Supply chain management involves coordinating and integrating these flows both within and among companies (Search CIO.com, 2007). Supply chain management flows can be divided into three main flows which consist of:
? Product flow covers the movement of goods from a supplier to a customer as well as any customer returns or service needs.
? Information flow transmitting orders and updating the status of delivery.
? Finances flow covers the credit terms, payment schedules, and consignment and title ownership arrangements.
2. Describe the essential components of a typical supply chain management process and define the components using examples.
The essential components of a typical supply chain management processes involve customer service, demand forecasting, distribution ...
Supply chain management is the focus of this editing piece.