What Is Supply Chain Management?

Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

What is supply chain management with example?

Supply chain management is the integrated process-oriented planning and control of the flow of goods, information and money across the entire value and supply chain from the customer to the raw material supplier. ... In essence, supply chain management integrates supply and demand management within and across companies.”

What is supply chain management in simple words?

Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

What exactly is supply chain?

A supply chain is a network between a company and its suppliers to produce and distribute a specific product or service . The entities in the supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers.

What is supply chain management and how it works?

The main objective of supply chain management is to ensure that the movement of products along the supply chain is smooth, efficient, and flexible . ... Supply chain management reduces production costs by ensuring that assembly factories receive timely shipments of raw materials.

What are the four 4 stages of supply chains?

There are four customary stages in a product’s life cycle: the introductory phase, the growth phase, the maturity phase and the decline phase . Each phase is markedly different and often requires different value chains. Supply managers need to craft supply strategies that reflect the unique needs of each phase.

What are the 5 basic components of supply chain management?

The Top-level of this model has five different processes which are also known as components of Supply Chain Management – Plan, Source, Make, Deliver and Return .

What are the types of supply chain?

• The “Efficient” Supply Chain Model. ...
• The “Fast” Supply Chain Model. ...
• The “Continuous-Flow” Supply Chain Model. ...
• The “Agile” Supply Chain Model. ...
• The “Custom-Configured” Supply Chain Model. ...
• The “Flexible” Supply Chain Model.

What are the stages of supply chain?

• Stage 1: Supply Management. The most basic stage, built around an internal MRP system that is lead-time driven. ...
• Stage 2: Supply Chain Management. ...
• Stage 3: Supply Chain Integration. ...
• Stage 4: Demand-Supply Network Collaboration.

What is supply chain with diagram?

A supply chain is a network of retailers , distributors, transporters, storage facilities, and suppliers who take part in the production, delivery, and sale of a product that convert and move the goods from raw materials to end users, it describes the processes and organisations involved in converting and conveying the ...

What skills do you need for supply chain?

• Knowledge of logistics, supply chain management, and transportation.
• Financial planning.
• Forecasting.
• Workflow optimization.
• General management and business.

Which company has best supply chain?

What are the objectives of supply chain?

It includes the movement and storage of raw materials, work-in-process inventory and finished goods from source to consumption. The broad objectives of Supply Chain Management are to create value, build a competitive infrastructure, leverage worldwide logistics, synchronise supply with demand and measure performance .

What is the main aim of supply chain management?

The primary purpose of the supply chain is to fulfill demand, drive customer value, improve responsiveness, facilitate financial success and build a good network . Most primary goals of efficient supply chain management should be – faster delivery, Higher efficiency, and an accelerated cash flow.

What are the basics of supply chain management?

Supply management is made up of five areas: supply planning, production planning, inventory planning, capacity planning, and distribution planning . Supply planning determines how best to fulfill the requirements created from the demand plan.

What are the benefits of supply chain management?

• Better collaboration. ...
• Improved quality control. ...
• Higher efficiency rate. ...
• Keeping up with demand. ...
• Shipping optimization. ...
• Reduced overhead costs. ...
• Improved risk mitigation. ...
• Improved cash flow.