Advantages And Disadvantages Of Supply Chain Management

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The best companies in the world are discovering a powerful new source of competitive advantage. It's called supply chain management and includes all onboard activities that bring products to market and satisfied customers.

The Supply Chain Management program covers topics from manufacturing operations, transportation, purchasing and physical distribution for a single program. Coordinated the successful management of the supply chain and all these activities integrated in a continuous process. It embraces the links all of the partners in the chain.

Successful SCM requires a change from managing individual functions to integrating activities in to key supply chain process. Supply chain process integration involves collaborative work between
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Process
Drive to achieve functional excellence and integration across all major processes.
- Core supply chain processes driving the business.
- Best in class approaches to our core processes (manufacturing, integrated demand planning, procurement, cycle-time, compression, dynamic deployment)
- Bulk linkages with suppliers and customers.
C. Organization
Providing the critical success factors of cohesion, harmony and integration across organization entities
- Level of cross functional integration is required to manage core processes effectively
- Leverage cross-company skills and abilities
- Performance measurement and reporting structure help to achieve objectives

D. Technology
Empowers the Supply Chain to operate on a new level of performance and is creating clear competitive advantages for those companies able to harness it.
- IT platform and core applications software support world-class SCM
- Advanced decision support capabilities have the greatest impact on business performance
- Data are required to manage the core business
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Coordinate with customer relationship management to identify customer articulated needs
2. Select materials and suppliers in conjunction with procurement
3. Develop production technology in manufacturing flow to manufacture and integrate in to the best supply chain flow for the product/market combination

G. Manufacturing Flow Management
The manufacturing process produces and supplies products to the distribution channels based on past forecasts. The production process has to be flexible to respond to market changes and Mass Customization must absorb.

H. Physical Distribution
This is the movement of a finished product / service to customers. In the physical distribution, the customer is the ultimate goal for a marketing channel and the availability of the product / service is an important part of the marketing efforts of the individual channels participants.

I. Out sourcing / Partnerships
These trends logic is that the company is increasingly focusing on those activities in the value chain where it has a distinct advantage, and everything else will be outsourced. This movement is a particular proof logistics

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