supply chain management

(noun)

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.

Related Terms

Examples of supply chain management in the following topics:

  • Other factors affecting supply chain management

    • In addition to managing the bullwhip effect, supply chain managers must also contend with a variety of factors that pose on-going challenges:
    • This puts added pressure on supply chain managers to continually improve performance.
    • Globalization imposes challenges such as greater geographic dispersion among supply chain members.

  • Supply Chain Management

    • Supply chain management is the management of the network of interconnected steps involved in the provision of product and service packages.
    • Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.
    • 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.
    • Cash-flow: Arranging the payment terms and methodologies for exchanging funds across entities within the supply chain.
    • Supply chain execution means managing and coordinating the movement of materials, information, and funds across the supply chain.

  • Special topic: supply chain management

    • Supply chain management is the business function that coordinates and manages all the activities of the supply chain, including suppliers of raw materials, components and services, transportation providers, internal departments, and information systems.
    • Exhibit 31 illustrates a supply chain for providing packaged milk to consumers.
    • In the manufacturing sector, supply chain management addresses the movement of goods through the supply chain from the supplier to the manufacturer, to wholesalers or warehouse distribution centers, to retailers and finally to the consumer.
    • The supply chain is not just a one way process that runs from raw materials to the end customer.
    • Money also tends to flow "upstream" in the supply chain so goods and service providers can be paid.

  • Introduction

    • understand three of the most important operations management practices: Total Quality Management, Supply Chain Management, and Just-in-Time/Lean Operations

  • Logistics

    • The term Logistics Management or Supply Chain Management is the part of Supply Chain Management that plans, implements, and controls the efficient, effective, forward, and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customer's requirements.
    • There is often confusion over the terms "supply chain" and "logistics. " It is now generally accepted that the logistics applies to activities within one company/organization involving distribution of product, whereas supply chain also encompasses manufacturing and procurement and, therefore, has a much broader focus as it involves multiple enterprises, including suppliers, manufacturers, and retailers, working together to meet a customer's need for a product or service.
    • Logistics as a business concept evolved in the 1950s due to the increasing complexity of supplying businesses with materials and shipping out products in an increasingly globalized supply chain, leading to a call for experts or supply chain logisticians.
    • The goal of logistics work is to manage the fruition of project life cycles, supply chains, and resultant efficiencies.
    • Starting in the 1990s, several companies chose to outsource the logistics aspect of supply chain management by partnering with a 3PL, third-party logistics provider.

  • Bullwhip effect

    • A major goal in supply chain management strategy is to minimize the bullwhip effect.
    • The bullwhip effect occurs when inaccurate or distorted information is passed on through the links in the supply chain.
    • As the bad information gets passed from one party to the next, the distortions worsen and cause poor ordering decisions by upstream parties in the supply chain that have little apparent link to the final end-item product demand.
    • As information gets farther from the end customer, the worse the quality of information gets as the supply chain members base their guesses on the bad guesses of their partners.
    • The results are wasteful inventory investments, poor customer service, inefficient distribution, misused manufacturing capacity, and lost revenues for all parties in the supply chain.

  • Investment in Operations

    • Supply chain optimization applies processes and tools that ensure optimal operation of a manufacturing and distribution supply chain.
    • Supply chain managers may employ optimization such as maximizing gross margin return on inventory invested (GMROII); balancing the cost of inventory at all points in the supply chain with availability to the customer; minimizing total operating expenses (e.g., transportation, inventory, and manufacturing); and maximizing gross profit of products distributed through the supply chain.
    • Supply chain optimization addresses the general supply chain problem of delivering products to customers at low cost and high profit.
    • Unpredictability in demand is subsequently managed by setting safety stock levels; for example, a distributor might hold two weeks of supply for a steadily in-demand article but twice that supply for an article whose demand is more erratic.
    • Supply chain optimization applies processes and tools that ensure the optimal operation of a manufacturing and distribution supply chain.

  • Reducing Waste and Environmental Impacts

    • Reducing waste by more efficient manufacturing is a key goal of management, with supply chain sustainability seen as a key component.
    • Supply chain sustainability is a business issue affecting an organization's supply chain or logistics network in terms of environmental, risk, and waste costs.
    • Sustainability in the supply chain is increasingly seen among high-level executives as essential to delivering long-term profitability and has replaced monetary cost, value, and speed as the dominant topic of discussion among purchasing and supply professionals.
    • One of the key requirements of successful sustainable supply chains is collaboration.
    • Realizing the efficiency that effective supplier relationship management creates, Wal-Mart has asked suppliers to be more efficient in managing their environmental footprint.

  • Influence on the Entire Supply Chain

    • Marketing can play a key role in integrating supply chain processes and promoting collaboration between different stakeholders.
    • Marketing flows and processes encourage information sharing throughout the entire supply chain.
    • It is crucial that brands support marketing functions so they are both managed effectively and integrated seamlessly into the larger supply chain, thereby meeting larger business goals.
    • Marketing flows are often integrated into the larger supply chain of an organization to promote efficiency.
    • Show the impact that marketing has on supply chains, both operational and marketing types

  • Production Recipients

    • When designed well, a supply chain is able to respond to shifts in demand and changes in the marketplace.
    • Based on these shifts, the supply chain is able to alter production levels accordingly so that supply can meet demand so that the firm is able to maximize its profit.
    • Supply chains vary based on industry, the resources of the manufacturer, and market conditions.
    • Some typical elements and actors in a supply chain include:
    • This represents the typical supply chain for a computer.