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.
Business is getting increasingly sophisticated due to the huge concurrence of global markets. Each organization either small or big has to stick to a kind of structure and strategy within its operations to make projects successful. During the last decades, companies moved from Logistics Management in 1986 to Supply Chain Management. Today’s Supply Chain Management also includes production and distribution by creating a chain of information from suppliers to costumers through the company. Since the customers’ expectations and global markets’ demand are getting more consequent, companies are forced to invest in and to pay attention to their supply chain to manage both cost and customers’ requirements.
Supply Chain Management includes coordination and collaboration between partners, which can be suppliers, intermediaries, third party service providers and customers. Supply Chain Management integrates supply and demand management within and between companies to serve the needs of the end-customer (Council of SCM, 2017). Supply chain risk management (SCRM) is the coordinated efforts of an organization to help identify, monitor, detect and mitigate threats to supply chain continuity and profitability ( Rouse, 2018) . Supply chain risks are the elements which causes non-performance in operations. Effective supply chain risk management is mandatory to have a successful business.
Fundamental 2: SCM Philosophy Supply Chain Integration. There are no doubts that the concept of integration is the core of SCM philosophy Christopher (1992). Firstly, in order to understand this concept, every material or service which flows along the chain until the final consumer, pass through a complex process between companies and people. A weakness in any of the steps can compromise the chain as a whole. Sweeney (2002) claimed that the phrase “supply chain” is used to indicate that the chain is only as strong as its weakest links.
The Information Management process In this process data from different repository IT systems, such as back and front office applications and analytical tools are monitored to determine customer satisfaction and standards. According to Buttle (2001) a CRM value chain is a system that identifies a series of ‘primary stages’ as mentioned above. These are helpful as it considers implementation issues. Therefore both Buttle and Payne identify five CRM processes including: strategic development; value creation; multi-channel integration; information management; and performance
The strategy-making, strategy-implementing process consists of five inter-related managerial tasks: 1. Developing forming a strategic vision and establishing a clear mission to be achieved. 2. Converting the strategic vision and mission into measurable objectives and performance targets. 3.
These decisions should enhance the supply chain value. These decisions are categorised into three phases: 1. Supply chain category or design: In this phase, company decides the structure of the supply chain for the upcoming years. It decides how will be the configuration of the chain, how to allocate the resources and the process that to be performed at each stage. Here, the companies may think the option of whether to outsource or perform a supply chain function in-house, the location and capacities of production and warehousing facilities, the products to be manufactured or stored at various locations, the modes of transportation to be made available along didderent shipping legs, and the type of information system to be utilised.
In addition, CRM help enhanced customer services by provide excellent communication with customers and modify the offer, thus maintain loyalty of profitable customers (Dimitriadis & Stevens, 2008). In the other way, CRM described as a commonly business strategy that using for managing and interacting with customers, supplier and shareholder (Gallagher, 2012). Gallagher (2012) studied that CRM has using technology to manage productivity and also for enhancing customer service. Therefore, SMEs need low cost and high benefit CRM to achieve successful customer service which is adapts business with IT
Benchmarking on a basis of supply chain management scorecard: An SCM scorecard can be developed on the basis of supply chain maturity model. Five levels of maturity are recognized which differ on the extent to which the process is explicitly defined, managed, measured and controlled. As the maturity level increases, level of process capability defined in terms of control, predictability and effectiveness also increases. Maturity levels, in order of increasing maturity are: • Ad hoc • Defined • Linked
SCM is an active management of supply chain activities that maximizes customer value and achieve a sustainable competitive advantage. The companies that are involved in supply chain are linked together through physical and information flows. The four basic components of SCM include, supply chain strategy, supply chain partners, supply chain operation and supply chain logistics. The supply chain strategy includes the strategy for managing all the resources to meet customer demand. The supply chain partners include the partners in the supply chain that are involved in the delivery of finished products, raw materials and services.