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What is a Supply Chain?
A supply chain is a set of two or more companies directly linked by one or more of the downstream as well as upstream flows of products, finances, and services, information from a source to a client.
What is a Supply Chain Management?
Supply chain management (SCM) is the accurate management of the flow of goods. Goods Management takes into consideration inventory work-in-progress,t he storage of raw materials, and finished goods from source to destination that means the point of consumption. A very complex interlinked network is involved in managing the supply chain. It is a much wide concept than just managing the goods. SCM deals with multiple phases including design, planning, execution, control, and monitoring of supply chain activities.
Functioning of Supply Chain
A good way to start is to describe the roles of the business that fills today, and the also the functions of the firm wish to write in the future regarding supply chain. In this way.This way is possible to create a dialogue concerning which relationships must is developing in the future. Business relations can be put in general categories to support the process.
There are four main categories:
- Relationships that the company in focus wishes to lead as well as coordinate.
- Relationships which are non-critical in nature and for the business in focus. However, it still should be monitored. Why? The reason is to ensure that the activities are completed by the other companies that are involved in the network.
- Relationships that the business in focus does not deem to be critical or worth sacrificing management power or monitoring resources on.
- Relationships to other supply chains.
A business can be a supplier for several internally competing supply chains. Such relationships are nor viewed as part of the relationships in the real supply chain, however, of course, have a substantial impact on the supply chain’s effectiveness and competitiveness.
Supply Chain Management is the systematic, strategic coordination of the traditional business functions within a particular organization and across business within the supply chain. This is for imposing the long-term performance of the individual companies.It also includes the supply chain as a whole.
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The fundamental objective of SCM is to build a competitive infrastructure.Another aim is to create a net value. Moreover, it also includes leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally. The concept of SCM is often viewed as the systematic and planned coordination of the business functions within an organization. It also includes the reasons across companies involved within the supply chain.
There are three basic concepts in Supply Chain Management
.These are interconnected tightly.They are useful in writing SCM assignment solutions. These three concepts are Network Structure, Business Processes and Management.
The problems of Supply Chain Management:
Distribution Network Configuration is the first and foremost problem that is faced by SCM. According to the supply chain management experts, there are multiple entities related to the complete supply chain management network, warehouse distribution centers, cross-docks, Compensation and production facilities, etc. After the identification of this problem second issue to address is the distribution strategy.
Under the distribution strategy, we answer questions related to supply chain assignment, such as Scheme of delivery (closed shipping, cross dock, etc.).This also includes mode of transportation (railroad, parcel, motor carrier, etc.). All such activities should be well coordinated to gain the lowest gross logistics cost. A vital cost increase can be seen it only one of the activity is optimized. Planning of various logistics activities, therefore, should be planned and consistent. A fourth important problem that is addressed by SCM is Inventory Management.
Last is the cash flow, which handles the payment arrangement payment terms and exchange of funds.
Concept of Business process Integration
Successful SCM needs a change from managing individual functions to integrating activities.It should be supply chain processes.For Example take a scenario, a purchasing department places orders. It is because its requirements become known. The definition of Supply Chain Management focuses on management of relationships as means of achieving better results for all members of the supply chain, including customers.
The marketing department communicates with several distributors and retailers. It attempts to determine ways to fulfill this demand. The information shared between supply chains partners can only be fully leveraged through process integration.
The key supply chain processes stated by Lambert (2004) are:
Customer Relationship Management:
Customer relationship management (CRM) model is used for managing the company's interactions with the current and potential future clients. It involves intensive use of technology to organize, automate, and synchronize sales, customer service, marketing, and technical support. Marketing includes such as social media (Facebook, Google), campaigns over distinct channels, Direct mail, telephone, and searches.
Customer Service Management:
Under CSM an organization tries to find the mutual goals for both the business and the customers. Additionally, it is focused on establishing and maintaining the customer rapport.
Help with Procurement Process:
Many strategies are employed with the suppliers to support the development of new products.Also, facilitates the flow management process. Depending on the size of the business can be implied on a global basis or the local basis. The purchasing function may also gain rapid communication systems, such as electronic data interchange (EDI) and Internet linkage. Activities related to obtaining products.Gaining materials from outside suppliers involve supply sourcing, resource planning, negotiation and order placement, etc.
About the goods movement or customer service as we know the customer is the end user of the manufactured product.However, it is the final destination of a marketing channel.First in the internal performance measurement that includes the cost, customer service and productivity analysis by the firm itself. Second is the external performance measurement that is measured Time & space of the client service is an integral part of marketing.
It is often seen that logistics competency is a critical factor in maintaining competitive advantage, logistics measuring has become necessary.here are two different types of parameters for the performance measurement. Aforementioned creates the product availability and customer service a vital part of the marketing channel. Through customer perception & trust for a brand and an organization.
Warehouse Management is an important aspect of the business process. According to a study by A.T. Kearney firms that are engaged in the absolute measurement of performance, have realized an improvement in the total productivity. T Warehousing plays a vital role in reducing the cost and expenses for the company.
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