SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management

Introduction

The main purpose of this paper is to discuss the articles related to supply chain management and discuss the process and functions of the supply chain management. The paper also deals with the ways through which supply chain management is implemented in organizations. Supply chain management is also considered to be the mixture of art and science which is used for the purpose of bringing improvements in the ways through which company finds out the ways.

Discussion

Supply chain management is called the planning and organization of all the tasks in the field of logistics and supplier selection and procurement. The supply chain management thus includes the coordination and the effective interaction of the participating dealers, logistics service providers, suppliers and customers. Supply chain management functions across both within a company and across the borders of the company. In this respect, individual businesses no longer compete but networked supply chains. Therefore, skillful coordination and the involvement of all supply chain members are necessary (Anderson, 2009, p. 201). For this, the supply chain management is responsible. Especially in this era of globalization, where there is shorter time to recognize sales of newly introduced products, and there are extremely high demands from its customers, supply chains work for the effectiveness of the individual companies and is considered to be the appropriate means of choice. Therefore, the concept of supply chain is understood primarily as a network of organizations. Through the international cooperation within the framework of globalization, many companies today can be considered as an element of such a supply network. A modern supply chain can be composed thus of companies who, while acting autonomously, but are connected with the other members of the network systematically. In simple terms, all suppliers in the supply chain, i.e. manufacturers, wholesalers, retailers, etc. involved to the end customer. This supply chain is among others in the narrow sense is often seen as a triad consisting of the respective companies, the suppliers of this company and the customers of the company. However, in this approach, the raw material suppliers, where appropriate, the manufacturer and the end user will not be considered. As each stage of the value usually equal involved several requirements that meet most of their supply chain function for a network. Therefore, as a synonym for the term Supply Chain Supply Network is common (Anupindi, 1993, p. 944).

The supply chain typically involves both goods, services, financial and information flows. It moves globally around from manufacturer to wholesale and retail goods and services ultimately to the end user, while the money moved in the opposite direction, from consumers to the retailer, the retailer to the wholesaler and the wholesaler to the manufacturer. The information flow begins in the context of supply chain usually from the end user, who places an order at the retailer. The retail and wholesale orders again move when these orders the goods from the manufacturer, which in turn requests the raw materials for the product with the raw material suppliers. Among the so-called the accompanying information is generally understood as ...