Without an efficient supply chain, there would be a lot of bottleneck involved in the organization. The key to an efficient supply chain is to make sure that the process runs as smoothly as possible. One needs to follow through each and every step of the process and make sure that things go efficiently and smoothly. The industrial organisation literature related to the advantages, disadvantages and applications of vertical integration and obligational contracts is explored.
Supply chains were originally defined as encompassing all activities associated with the flow and transformation of goods from raw materials through to the end user, as well as the associated information flows. Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve a competitive advantage.
The management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, company, resellersand final consumers.
As a consequence, costs must be lowered throughout the chain by driving out unnecessary expenses, movements, and handling. Efficiency must be increased, and bottlenecks removed. The measurement of performance focuses on total system efficiency and the equitable monetary reward distribution to those within the supply chain.
The supply chain system must be responsive to customer requirements.
It also includes coordination and collaboration with channel partnerswhich may be suppliersintermediariesthird-party service providers, or customers. More recently, the loosely coupled, self-organizing network of businesses that cooperate to provide product and service offerings has been called the Extended Enterprise.
Supply chain management is the management of such a chain. With SCEM, possible scenarios can be created and solutions devised.
Including third-party logistics or other gathering agencies as part of the RM re-patriation process is a way of illustrating the new endgame strategy. As organizations strive to focus on core competencies and become more flexible, they reduce their ownership of raw materials sources and distribution channels.
These functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations.
Less control and more supply chain partners lead to the creation of the concept of supply chain management. The purpose of supply chain management is to improve trust and collaboration among supply chain partners thus improving inventory visibility and the velocity of inventory movement, Importance[ edit ] Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy.
In recent decades, globalization, outsourcing, and information technology have enabled many organizations, such as Dell and Hewlett Packardto successfully operate collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities Scott, This inter-organisational supply network can be acknowledged as a new form of organisation.
However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories Powell, It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players.
From a systems perspective, a complex network structure can be decomposed into individual component firms Zhang and Dilts, Traditionally, companies in a supply network concentrate on the inputs and outputs of the processes, with little concern for the internal management working of other individual players.
Therefore, the choice of an internal management control structure is known to impact local firm performance Mintzberg, In the 21st century, changes in the business environment have contributed to the development of supply chain networks.Nov 05, · A supply chain management degree is a business degree with an emphasis in supply chain management, says the Institute for Supply Chain Management.
Supply Chain Management (SCM) is a broad range of activities required to plan, control and execute a product's flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and cost-effective way possible.
Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed . supply chain management and control, people can discover the potential business opportunities on the market, on the other hand is to prevent market uncertainty, enhance risk of smell.
(4)The implementation of supply chain management and control .
Supply chain management is an essential aspect of every organization, whether big or small. It is the active management of supply chain activities for a business to maximize customer value and attain a sustainable competitive advantage.
Jun 26, · Managing risk is a key responsibility for business leaders, and supply chain management systems allow for the identification of critical risk .
Your business’ supply chain is the system you use to get your product to end consumers, from obtaining raw materials to delivering the final product.