Supply chain is a complex network of relationship that organizations maintain with trading partners to source, manufacture and deliver products. SCM is the coordination of material, information and financial flows between and among all the participating enterprises. The article examines the various functions of supply chain management, the characteristics of supply chain management and the types of supply chain management. It also examines Internet-based supply chain.
In the simplest sense, the supply chain is a "process umbrella" under which products are created and delivered to customers. The council of Logistics Management defines Supply Chain Management as "the process of planning, implementing and controlling efficient and cost effective flow of raw materials, in-process inventory, finished goods and related information from point-of-origin to point-of-consumption for the purpose of conforming to customer requirements". In other words, SCM is the integration of key business process from end user through original suppliers that provides products, services and information that add value for customers and other stakeholders. From a structural standpoint, a supply chain refers to the complex network of relationship that organizations maintained with trading partners to source, manufacture, and deliver products. SCM integrates all the elements of a customer service focused organization i.e., customer analysis, purchasing/supplier partnering, transportation, inventory management and control, cost benefit analysis, material management, manufacturing/ remanufacturing. SCM is made up of: Cataloging, Planning, Sourcing, Ordering, Storage, Costing, Bidding, Distribution, Receiving, Payment, Booking, Contracting. Logistics is that part of the supply chain process that plans, implements and controls the efficient, effective flow and storage of goods, services and related information from point-of-origin to point-of-consumption in order to meet customer requirements. SCM has a much broader scope and consider the effect of functions other than logistics on business processes spanning multiple companies. In a nutshell, SCM is the coordination of material, information, and financial flows between and among all the participating enterprises. |
