SUPPLY CHAIN MANAGEMENT

Supply Chain Management

Supply Chain Management

Introduction

The concept of Supply chain management (SCM) is and its implementation is vital for the efficient operations of any organization. SCM refers to the management of a meshing of interlinked businesses engaged in the quality supplying of goods and service packages asked by end customers (Harland, 1996). The process of SCM ranges from the transference and warehousing of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption (Bowersox & Cooper, 2001).

According to the definition of APICS Dictionary, the term SCM pertains to the designing, plan, executing, controlling and monitoring of the activities concerning with the supply chain activities. These activities indulge in the creation of net value, building an extremely efficient and effectively competitive infrastructure, and providing a global leverage to the organization's logistics (Mentzer, 2001, Pp. 1).

Discussion

Importance of Effective Supply Chain Management

The management of the Supply Chain Management (SCM) is emerging as the combination of technology and best business practices worldwide. Companies have improved their internal operations are now working to achieve greater savings and benefits by improving processes and information exchanges that occur between business partners (Davis, 2003, 35).

A successful supply chain management implies timely delivery to the final customers, the right product at the right place at the right time, the required price and the lowest possible cost. Increase participants' ability to make decisions, formulate plans and outline the implementation of a series of actions is the main objective of the supply chain.

1.The significant improvement in the productivity of the logistics system that is operational.

2.To increase service levels to customers.

3.In the implementation of actions that lead to better management of operations and development of lasting relationships of great benefit to suppliers and key customers of the supply chain

Supply Chain Management and Business Functions in an Organisation

The supply chain management and the business functions are greatly linked in an organization. The supply chain management is the process of executing different operations that facilitates the management with the achievement of the organizational goals and targets. The supply chain management helps in organizing different tasks and look after whether all the functions of the organization are fulfilled properly or not. To run the business functions properly is the part of the responsibility of the supply chain management. Thus, it is the role of the supply chain management to run the organization efficiently and effectively by taking care of all the business functions properly. If the organizational supply chain process is working efficiently then the business functions of the organizations will also be fulfilled effectively.

Integrated Supply Chain Strategy in an Organisation

The integrated supply chain strategy is a new concept that works efficiently in an organization. The key drivers of the integrated supply chain strategy are the integration of the internal process and the enhancement of the relationship between the supplier and the organization. However, the main objective of the integrated supply chain management is to make the timely distribution of goods and services to the suppliers while ...