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Supply Chain Management can be characterized as the administration of stream of items and administrations, which starts from the source of items and closures at the item's utilization. It likewise includes development and capacity of crude materials that are engaged with work in advance, stock and completely outfitted products. The principle target of store network administration is to screen and relate generation, dispersion, and shipment of items and administrations.
This should be possible by organizations with a decent and tight hold over inward inventories, creation, conveyance, inner preparations and deals. The key advantages of store network administration are as per the following: Develops better client relationship and administration, makes better conveyance systems for items and administrations popular with least postponement, Improvises profitability and business capacities, Minimizes distribution center and transportation costs, Minimizes immediate and circuitous expenses.
The objectives of store network administration: (a) Supply chain accomplices work cooperatively at various levels to boost asset efficiency, develop institutionalized procedures, expel copy endeavors and limit stock levels, (b) Exceeding the clients' desires all the time is the most ideal approach to fulfill them and so on. The procedure of SCM is Plan, Develop, Make, Deliver and Return. Production network execution measure can be characterized as a way to deal with judge the execution of store network framework. Store network execution measures can comprehensively be characterized into two classifications: Qualitative measures: (For instance, consumer loyalty and item quality), Quantitative measures: (For instance, arrange to-conveyance lead time, production network, reaction time, adaptability, asset usage, conveyance execution).
Supply chain management is the management of material and information flow in a supply chain. it requires the commitment and order by customers.it involves production, strategy, order fulfillment. SCM mainly concerns with the satisfaction of customer. Different parts of Company mainly focus on the three main activities of SCM which are strategic, tactical and operational. Main elements of supply chain management are:
Customer - Customer is the main elements of the supply chain management which decide to purchase a product by a company.
Planning- In this, planning department create a production plan according to the customer requirements.
Purchasing - Purchasing department get a list of raw materials according to the customer requirements. Purchasing department sends orders to the suppliers with raw material.
Inventory - Raw materials are received by the suppliers. They check the quality and accuracy of materials and moved it into the warehouse. It will send to the production department when they required.
Production – When there is a demand of production department, raw material is send to them. Production department manufacture the product with raw material according to the order of customer. After that, they store product again in the warehouse.
Transportation – it is the last element of SCM, when product arrives in the warehouse, shipping department delivered the product before the date specified by a customer.
A supply chain is a network that performs the function of procurement of materials, and then transforms those materials into intermediate and finished products, and then distributes these products to customers.
Difference between traditional concept of logistics and supply chain management
Logistics refers to the activities that occur within the boundary of an organization.
Supply chains refer to network of different companies that work together and then coordinate with each other to deliver a product to market.
Areas accompany take decisions:
1. Production—it is the first phase and in this type of product and its quantity is decided. This phase decides the master production schedule.
2.Inventory—in this stage, decision about the inventory requirement at different stages of supply chain is decided like type and quantity of raw material required. The primary purpose of inventory is to act as a buffer for material requirement.
3. Location—in this stage, decision is taken regarding the location for storing of inventory. Cost efficient location needs to be finding out for storage.
4.Transportation—in this stage decision is taken regarding the movement of inventory from one supply chain location to another. For Example: Air freight and truck delivery are fast and reliable ways for shipping and it is expensive method. Shipping by sea or rail is less expensive method.
5.Information—In this stage amount of data required is decided. Main requirement this accuracy of information and timely delivery of information. With proper information people can make effective decisions about what to produce and how much to produce and where to locate the inventory and how it can be transported.
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.
Another definition is provided by the APICS Dictionary when it defines SCM as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.
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Supply Chain Management includes:
- Cycle View of the Supply Chain,SC Objectives and Uncertainty,SC Strategy,Push vs. Pull,Transportation, Sourcing,Strategic Sourcing, Purchasing, Procurement Cycle,Sales and SCM
- SC Online Sales,Bullwhip,SC Transparency,Sustainable Supply Chains,Green Supply Chains,Forecasting ,Linear Programming,Production Strategy ,Capacity and Constraint Management
- Quality ,Statistical Process Control,Queuing Theory ,Inventory Models ,Revenue Management ,Project Management,demand estimation,process analysis and improvement,facility location and capacity planning
- Inventory management,supply chain coordination,supply chain,Development of strategies,Supply channel management,Inverse logistics,Direct and inverse management of chain