SUPPLY string of links MANAGEMENT

SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN MANAGEMENT

Introduction

In simplest terms, supply chain management (SCM) allows an organization to get the right goods and services in the areas that they need at the right time, in the right quantity and at an acceptable cost. (Sheilds 2001)Efficient management of this process involves overseeing relationships with suppliers and customers, controlling inventory, forecasting demand and getting constant feedback on what is happening in each link in the chain.

The supply chain involves several components:

• Location. Important to know where the production facilities, stocking points and sourcing points is found, determining the path along which goods flow.

• Production. An organization must decide what products to create and which plants, which are service suppliers to plants, plants which are specific supply distribution centers, and, sometimes, how the goods will get to the final customer. These decisions have a major impact on revenue, expenses and customer services.

• Inventory. Each link in the supply chain is to keep a certain inventory of raw materials, parts, subassemblies and other goods on hand as a buffer against uncertainties and unpredictability's. Shutting down an assembly plant because a part is not expected to freight is expensive. But the inventory costs money too, so it's important to manage the deployment strategies, determine good order quantities and reorder points, and set safety stock levels.

• Transportation. How materials, parts and get products from a link in the supply chain to the next? Choosing the best way to transport goods often involves trading off the shipping cost against the indirect costs of inventory. For example, shipping by air is usually very quick and reliable. Shipping by sea or rail is likely to be cheaper, especially for bulky goods and large quantities, but more slowly and more reliable.

How has ERP facilitated provide chain functions?

provide string of links is an important method that encompasses the controlling and concluding the main heading of resource action in an organization. It also includes all other sub processes involved in coordinating them. ( Dehning 2003) The concept of supply chain and its management is not a new one. It was in existence from yester year. However ERP has helped to reduce their errors and increased performance of "the chain / plan of action." It is important to know about ERP and supply chain management.

Some of the matters concerning ERP for provide chain management are as follows:

Change management

By and large the entire process of ERP has been known for much number of changes in all areas right from the organizational structure of the rules and regulations. In this context the headaches of managing change is an important issue for senior management. In fact the senior management themselves to be convinced either by in-house IT staff or vendors / consultants. The task of conceiving perception about the change is not an very simple one. Everybody is bound to react in a negative way.

Regardless of the consequences and results managements action to go for ERP if they feel so strong and if the ...