Introduction “Supply chain consists of all parties involved, directly or indirectly in fulfilling customer request”, (Chopra & Meindl, 2001, p.16). It includes transporters, warehouses, retailers, and even customers themselves and not only the manufacture and suppliers. When referring to its function in an organization, it involved the process of receiving and filling a customer’s request with its major purpose to satisfy the customers’ needs while generating profit in the process. A prime example of supply that was listed by (Chopra & Meindl, 2001, p.16) was “Consider a customer walking into a Wal-Mart store to purchase detergent. The supply chain begins with the customer and his or her need for detergent.
Supply Chain Risks A supply chain is a global network used to deliver products and services from raw materials to end customers in an engineered flow of information, physical distribution and cash (Blackstone, 2008). Supply chains are networks of suppliers, companies, resources, activities and technology included in the creation, production and sale of products. Risk is the possibility of an unforeseeable event which can harm and undermine the establishment. Supply risk is the probability of an incident associated with inbound supply from individual supplier failures or the supply market occurring, in which its outcomes result in the inability of the purchasing firm to meet customers’ demands or cause threats to customer life and safety (Zsidisin,
INTRODUCTION Background of the Study In the past decade the combination of market, economic, and technology forces like increase in supply networks combination, globalization, and product variety proliferation has initiate the companies to examine and try to recreate the strategies of supply chain (Hakikur, 2011). The rapid increase in uncertainty in the evolution of market has made the companies aware about supply chains. Organizations that have learned about building as well as contributing into supply chains will definitely get the competitive advantage in the market. It’s indicated by Cheng and Choi (2010), the main objective of Supply Chain Management is to attain the sustainable competitive advantage (Cheng, T. C. E. & Choi, 2010).
In recent years, supply chain has become strategic need of the company to perform consistently in turbulent market. The supply chain has evolved over the years as a strategy, however it took almost two decades to understand the evolution of supply chain from traditional transportation practices to an integrated approach which binds all the functional competencies, information’s flow and fund flows from one end to other ends which connect to remotest links which one firm have never realized. The intense competitions among firms, depleting natural resources, environmental concerns, political instability, crumbling economies and increasing inflation rates have forced the firms to aligned and adapt themselves in the tune of global needs of the
The supply chain is the series of links and shared processes that exist between supplier and customers. These links and processes involved all activities from the acquisition of raw material of the delivery of finished goods to the end consumer. Raw material enters into a manufacturing organization via supply system and is transformed into finished goods. The finished goods are then supplied to consumers through a distribution system. Generally, several companies are linked together on this process, each adding value to the product as it moves through the supply chain (Mohile,
However, many company feel that the process of apply Supply Chain Segmentation is a very difficult and complex strategy for the complex global marketplace. Although this is a complex strategy, Supply Chain Segmentation is become more important for now competitive marketplace. The single-supply chain companies is more and more harder and difficult for them to meet the requirement of their target market because the rise of globalization and outsourcing. In this complicated market, the relation and interdependent among company and supplier is very high related to adapting supply chain processes which to meet the need of the customer for
One of the definition stated that Supply chain management consist of planning and participating in the procurement and sourcing, conversion of all the activities of the management, as well as entirely logistics management activities. It is also important to include arrangement and cooperation channel partners, which can be suppliers, third-party service suppliers, contact man and final users. Shortly, Supply Chain Management take part of supply and demand management within and through organization. Other than that, Supply Chain Management can also defined as the procedure and participating in the procurement and sourcing, conversion, create demand and meet all of the activities of the management, and whole logistics management activities. In addition, Supply Chain Management is also includes arrangement and collaboration channel partners, which can be suppliers, third-party service suppliers, contact man and final users.
Introduction to Enterprise Resource Planning (ERP) Supply chain management (SCM) is the overlook of the company’s information, materials needed in the process from supplier to manufacturer to wholesaler to retailer and lastly to the consumer. In addition, supply chain management’s function is to coordinate and integrate the flows within or among the companies. An effective supply chain management can help the company to reduce the inventory; it means that if the company applied supply chain management effectively, then the company can make sure their products are available when they needed. There are three main floes in supply chain management flows which are product flow, information flow, and finances flow. Product flow means the goods move
Service Supply Chain Management With the growing importance of service sector in various economies of the world, a new area important area has come up which is important for the operations perspective of service sector. This new area is Service Supply Chain Management. In the domain of SSC, two types of supply chain exists which are Service Only Supply Chain and the Product only Supply Chain. SOCS basically consists of pure services such as psychological advice, healthcare body checking, financial consulting etc. There are some supply chains which handle both physical products with significant service considerations.
LITERATURE REVIEW Supply Chain Management is defined as a network of facilities that produce raw materials, process them into final products, and deliver those products to customers. This process includes procurement, manufacturing and distribution. The basic objective of supply chain management is to “optimize performance of the chain to add as much value as possible for the least cost possible” (Lee & Billington 1995). In simplified terms, it links all supply chain activities as a means to “maximize productivity in the supply chain and deliver the most benefits to all related parties” (Finch 2006). In recent times, good logistics and supply chain management has increased the capability of businesses to achieve a competitive edge over its