Supply Chain : The supply chain encompasses all activities associated with the flow and transformation of goods from the raw materials stage (extraction), through to end users, as well as the associated information flows. Material and information flows both up and down the supply chain. The supply chain includes new product development, systems management, operations and assembly, purchasing, production scheduling, order processing, inventory management, transportation, warehousing, and customer service. Supply chains are essentially a series of linked suppliers and customers; every customer is in turn a supplier to the next downstream organization until a finished product reaches the ultimate end user.
What is SCM ?
Supply Chain Management (SCM) : SCM is the integration of all the activities in the supply chain to achieve a sustainable competitive advantage. Supply Chain can be broadly classified of comprising of three networks – Supplier, Firm and Distribution.The supplier network consists of all organizations that provide inputs, either directly or indirectly, to the focal firm (i.e., the purchaser). Focal firms network is involved in the conversion of input material to the output material. The distributive network consists of all downstream organizations from the focal firm that ensure that the right quantity of goods is delivered to the appropriate customer location in a timely manner.
Elements of Supply Chain
Suppliers, Producers, Distributors, Customers etc.,
Following are the key elements in Supply Chain Management:
???? Customers
???? Producers (includes Retailer, Distributor, Manufacturer)
???? Suppliers
Interrelationship of the elements
???? A number of companies can be linked in the supply chain network.
???? A supplier to one manufacturing facility can be a customer to another
manufacturing facility and so on.. hence a number of supplier / customer
relationships exist in the supply chain network.
???? A number of intermediaries (distributors, wholesalers, retailers etc.,) form part of
the supply chain network.
In defining the supply chain network and the integrations between the elements, the
following decisions must be made
???? Identifying the key supply chain elements in the network to link the processes.
???? Identifying the processes that are to be linked with the key elements.
???? Identifying the level of integration and management control to be applied for each
of the processes
What is SCM ?
Supply Chain Management (SCM) : SCM is the integration of all the activities in the supply chain to achieve a sustainable competitive advantage. Supply Chain can be broadly classified of comprising of three networks – Supplier, Firm and Distribution.The supplier network consists of all organizations that provide inputs, either directly or indirectly, to the focal firm (i.e., the purchaser). Focal firms network is involved in the conversion of input material to the output material. The distributive network consists of all downstream organizations from the focal firm that ensure that the right quantity of goods is delivered to the appropriate customer location in a timely manner.
Elements of Supply Chain
Suppliers, Producers, Distributors, Customers etc.,
Following are the key elements in Supply Chain Management:
???? Customers
???? Producers (includes Retailer, Distributor, Manufacturer)
???? Suppliers
Interrelationship of the elements
???? A number of companies can be linked in the supply chain network.
???? A supplier to one manufacturing facility can be a customer to another
manufacturing facility and so on.. hence a number of supplier / customer
relationships exist in the supply chain network.
???? A number of intermediaries (distributors, wholesalers, retailers etc.,) form part of
the supply chain network.
In defining the supply chain network and the integrations between the elements, the
following decisions must be made
???? Identifying the key supply chain elements in the network to link the processes.
???? Identifying the processes that are to be linked with the key elements.
???? Identifying the level of integration and management control to be applied for each
of the processes