SCM

Supply Chain Management



Supply Chain Management

Introduction

Supply chain logistics is a network consisting of suppliers, factories, stores, warehouses, distribution centers, retail outlets, and the raw materials, work in process, finished goods that pass between them. Supply chain management is a set of concepts used, in order to efficiently integrate suppliers, manufacturers, warehouses and stores so that merchandise was produced and distributed in the right quantities, in the right places in order to minimize the total cost, meeting the needs of the appropriate degree.

Modern supply chain is characterized by:

rapid response capability, the ability to meet rapidly changing demand

flexibility, ability to adapt to the optimum: the cost-level of service

the ability to optimize the use of resources

the ability to use all available information (Frazelle, pp. 63-66, 2002).

Discussion

Task 1

Importance of Effective Supply Chain Management in Achieving Organizational Goals

Supply chain management aims to destroy all barriers encountered on the path of the various participants in the supply chain. This requires an intra-organizational, cross-functional coordination and control of trade, information, financial and legal streams. It is important that the views of one company is transferred to the entire chain. In the center is the synergy of collaboration, and the boundaries of the enterprises become shaky, is not limited by the enterprise. Supply chain management has become a crucial aspect of a modern organization for a number of reasons. First of all changed the balance of power. In the past, manufacturers dictate terms to retailers. Now, retailers set the tone for a sophisticated system designed so that they can get anything, anytime. Companies such as Wal-Mart, now store terabytes of information about consumers. Manufacturers have to meet their growing needs (Geunes & Pardalos, pp. 98, 2005).

Second, a factor which is of increasing importance in the overall corporate competitiveness has become the time. Laggards out of business. Speed began to play a crucial role, whether it be product development, production or marketing. The competition is based on time. Delayed delivery stop production lines or become a cause of frustration consumers who immediately turn to another supplier.

The third factor - the expansion of information technology (IT). IT companies were given the opportunity to manage the flow of goods, materials, ideas and information hitherto unheard of way. Thanks to IT, each element of the supply chain - manufacturer, retailer or end user - is aware of what is going on with the others. For example, if the supermarket ends certain line of products, technologies make it possible to re-order automatically.

The last factor, which increases the importance of supply chain management - globalization. A truly global companies need global supply chains. The raw materials must come to the most unbelievable outposts corporations - on time and in the appropriate quantity. For large, multinational companies with global supply chain management is an extremely complex task, but it is critically important to their competitiveness.

Drivers of Supply Chain

Production

The company decides what to produce and how.

Delivery

This driver is important when making the decision in principle on the construction of either entering the supply chain, the company must ...