Have you heard of Just-in-time, TQM, The rise of Toyota as a powerful global player in the automobile industry, even surpassing the gaping mouths of the huge three in the United states? You would have definitely stumbled upon the term ‘Supply Chain Management’ – It sounds like lingo, doesn’t it? Well, it isn’t really so difficult to comprehend and it is something most manufacturing (even services!) industries indulge in today. Supply Chain management essentially implies that the procedure of managing the entire procedure of discovering a ideal raw material, processing it and converting it into something important or beneficial that could be offered to the market.
The better a business remains in managing its resources, the procedure of locating its basic materials, processing them, dealing with them, the entire production procedure, the out put, the product packaging and even the labelling may constitute a simple supply chain management case study.
Supply Chain Management According to the CIO Magazine
Supply chain management (SCM) is the mix of art and science that goes into improving the way your business discovers the raw elements it has to make a product or service and deliver it to consumers. The following are five fundamental parts of SCM.
Supply Chain Management has a lot of visible as well as undetectable elements to it. The attractive parts might probably be the supplier management and the like. It is the undetectable parts of the supply chain that achieve the status of primary significance. Things like labor management, procurement, warehouse management, Order processing, fulfillment and shipment.
The importance of supply chain management has actually been growing progressively over the recent years and more so because of that the business have been growing larger and bigger in size.Due to this enormous boost in size, the business gain more cost effectiveness when they outsource a few of the functions that they ought to do themselves to other specific service companies that do the needful. This makes it possible for the bigger business to be more versatile, focus more on their core competencies and create more value for their clients, while maintaining profits by lowering expenses at the same time. The common, easy to use, nature of the Internet has actually made it possible to automate some of its supply chain management aspects with the help of robust supply chain management software (Though it is constantly not so easy to do the execution and execution part!).
The extended supply chain – the suppliers and their suppliers network, has always become a crucial link in the new period of Modern supply management theory and has actually taken it to another realm where whatever comes down to cost cutting such that the whole procedure can produce worth for the client.