ipl-logo

Key Components Of Supply Chain Management

1123 Words5 Pages

Supply Chain Management (SCM) is the wider concept of looking at the business needs from the sourcing till the production of the final product and delivering it to the customer. SCM attempt to centrally control or link the sourcing, the production, the shipment, the warehousing and distribution of products. The purpose is to ensure the whole business know what is happening when and where. By managing the international supply chain, companies are able to cut wastage and become more lean and mean, be more competitive and provide products faster. Being more lean and mean will drive the company to keep tighter control of internal inventories, production, distribution, sales and the inventories held and forecasted are all key elements in the SCM. …show more content…

It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain. Supply chain management has been defined 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. SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.” …show more content…

The following are seven basic components of Supply Chain Management (SCM):
1. Plan — This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand for their product. A big piece of SCM planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.
2. Sourcing — Once companies have planned and developed their SCM strategy, the next step is to find and select the suppliers of the required goods and services needed to create the final product or service. Supply chain managers, together with their suppliers must develop a set of pricing, delivery and payment processes and also create metrics for monitoring and improving the relationships. SCM managers should then put together processes for managing their inventory, including receiving and verifying shipments, transferring them to the manufacturing facilities and authorizing supplier

Show More
Related
708 Words | 3 Pages

Trader Joe 's is a developing chain of supermarkets with a distinction. Whilst not a gigantic chain store, Trader Joe 's accentuates little stores which offer a choice of merchandise hard to discover somewhere else at lower costs. The way that quality merchandise come at such low costs is only one motivation behind why the Trader Joe 's organization has turned out to be so fruitful. From humble beginnings, the organization has now developed into a multi-billion dollar monster.

Read More
678 Words | 3 Pages

By using SCM, a company could gain some profits like efficient and effective materials movement between suppliers, customers, and partners. SCM also create more accurate order processing, reductions in inventory levels, less time to market a product, lower transaction and material cost, and also build strategic relationship with suppliers. There are three steps to SCM implementation : 1. Improve internal supply chain processes and relationship with suppliers and customers. 2.

Read More
862 Words | 4 Pages

Target has proved to have a solid supply chain in the past; however, as the business increased over the years the supply chain has become extremely complex. With the opening of new stores and increase in the assortments of goods, Target has found it challenging to keep every item in stock. As a result, Target’s ability to grow sales has been adversely affected by product stock outs. During an earnings conference call Target stated, “our supply chain was built to serve an outdated model in which product flowed from vendors through distribution centers to stores” (Businessinsider.com, 2015). As the customers are now moving towards e-commerce, the dynamics of supply chain is changing.

Read More
1628 Words | 7 Pages

- Supply chain planning:

Read More
1029 Words | 5 Pages

Posted by Jialiang Tian at Monday, January 22, 2018 3:18:26 PM Warby Parker was founded in 2010 which focus on providing the prescription of glasses. Warby Parker sells the majority of their products through the online platform and also have a few physical retail showrooms in North America. The company sold eyewear online at the beginning, then they carried a “Home-Try-On program” which makes customers to choose the structure of the glasses from the website and the products will be delivered to the buyer’s address in 5 days for free. Warby Parker select the materials carefully.

Read More
1204 Words | 5 Pages

Thus, the need to use SCM initiatives and practices in all supply chain levels was evidenced, so that processes were optimized, reducing financial and relationship costs and finally making enterprise daily routines part of the organization objectives and activities. The increasing use of information technology represents a great opportunity window and stands as a fundamental part of SCM, as it allows information

Read More
1144 Words | 5 Pages

The planning section would involve budgeting, the sourcing strategy, the outsourcing strategy, sales and operations planning, and forecasting (South University Online, 2015). The source would involve the types of materials that Target uses, the ordering of these materials and the delivery. The make aspect would involve the production, manufacturing and quality of the goods (South University Online, 2015). The deliver portion of this model would pertain to the ordering taking and shipping of all of Targets goods. Well the return process would involve both supplier return and dealer/customer return (South University Online, 2015).

Read More
1348 Words | 6 Pages

This phase will be referred to as Category Management. Supplier Relationship Management (SRM) will be accomplished through stratifying the supply base, tracking Supplier Performance Metrics (through quarterly business reviews with service and parts providers), and developing supplier performance improvement plans. Governance will be improved by measuring compliance through contract rather than contract spend, reducing leakage through a purchasing re-direct process, and developing a robust communication & business partner engagement to improve awareness. Finally, Category Management processes which will include risk and mitigation plans, a dashboard of category supplier performance and governance, and demand management and SKU

Read More
1725 Words | 7 Pages

In the early 2000s, The Boeing Company faced many challenges with increasing competition in the commercial aircraft market. To remain competitive, they began the development of their 787 Dreamliner aircraft using an unconventional approach in terms of supply chain management. The historical approach that Boeing used on previous aircraft designs required Boeing to procure raw materials and subassemblies from several different suppliers and manufacture the final assembly in house. Dreamliner sought out to be the first of Boeing 's kind to outsource 70 percent of its major subassemblies under a Partnering for Success initive (5) , leaving Boeing to assemble the final assembly performed in-house. Build airplanes the same way the automobile industry

Read More
995 Words | 4 Pages

Q. 2. Recent development in Technology has enabled huge global organizations to avail information easily in their premises for smooth functioning of various departments within an organization. Much of a company's success comes down to its Supply Chain Management and logistics. The development of Information Systems in SCM helps in cost reductions, customer satisfaction and productivity.

Read More
6042 Words | 25 Pages

Introduction Supply chain Management Let us initially understand what is supply chain management, it can be defined as ‘ the integrated network of all the people, organizations, resources, activities and technology involved to create and sell the product, from the delivery of raw materials from the supplier to the manufacturer, through to its final delivery to the end user’. It oversees flow of goods, information, labor and finance across the entire network. Time taken from start point to end point of the value chain is called the Lead time. Lead time plays a very crucial role in entire supply chain planning.

Read More
1860 Words | 8 Pages

Brand described as a network of facilities and distribution options. The researchers argue the supply chain include different functional areas such as inbound and outbound transportation vegetables, chicken and meat, warehousing, inventory control, suppliers foods, supply management forecasting, production planning, order processing and customer services (Dwivedi, Dwivedi and Tewari, 2014). Supply chain management consists of managing the production network from raw material supplier to final customer. Regardless of any doubt, any industry faces a range of challenges in the supply

Read More
3552 Words | 15 Pages

1.0 Introduction to Strategic Management Strategic management practices the formation; achievement and reaching the major objectives executed by the management of the company, by considering the capital and a task of the internal and external environments in which the company wishes to compete. 1.1 Introduction to Singapore Airlines Singapore Airlines (SIA) is established in year 1972 with remarkable performance among its competitors in the industry throughout its 35-year-long history till date (Heracleous & Wirtz, 2009). According to Singapore Airlines (2014), SIA is one of the youngest aircraft fleets worldwide to destinations crossing a network of more six continents, with its iconic Singapore Girl providing excellent standard of service to customers. Throughout the years of operations, SIA has an impressive ever-growing list of industry 's leading innovations such as offering free headsets along with a choice of meals and drinks in Economy Class in the 1970s, followed by introducing satellite based in-flight telephones in year 1991, involving an ample panel of renowned chefs, the International Culinary Panel, to provide lush in-flight meals in year 1998, developing audio and video on demand (AVOD) capabilities on KrisWorld in year 2001, and lastly flying the airbus of A380 from Singapore to Sydney on 25 October 2007 (Singapore Airlines, 2014).

Read More
807 Words | 4 Pages

Supply Chain Management (SCM) department encounters a number of different stakeholders. Many different working relationships take place within each individual work on, from colleagues to clients, stakeholders, and suppliers. The internal supply chain that delivers the service is complicated and requires the co-ordination and co-operation of individuals and teams who have different skills and priorities. Hence, understanding stakeholder needs and working effectively with them is critical to the success of the procurement team. Cleland (1995: 151) recognised the need to develop an organisational structure of stakeholders through understanding each stakeholder’s interests, and negotiating both individually and collectively to define the best way

Read More
771 Words | 4 Pages

The best companies in the world are discovering a powerful new source of competitive advantage. It's called supply chain management and includes all onboard activities that bring products to market and satisfied customers. The Supply Chain Management program covers topics from manufacturing operations, transportation, purchasing and physical distribution for a single program. Coordinated the successful management of the supply chain and all these activities integrated in a continuous process.

Read More

More about Key Components Of Supply Chain Management

Related Topics

Open Document