Supply Chain Management Concept

1256 Words6 Pages
Supply Chain Management Concepts Supply Chain Management is a system and efficient integration between supplier, manufacturer, wholesaler and the customers. The main purpose is to produce merchandise and distribute at right time, the right quantities, to the right locations. These processes are carried through certain skills by maintaining the materials, information, finances and better coordination. The main objective of SCM is reducing cost, time and inventory and satisfying service level requirements (Bevan, 2005, 56). It is sometimes very difficult for organizations to coordinate and integrate all the SC functions which are very different and may require entire new system of operations. Many authors have presented various theories and…show more content…
According to procurement and supplies the SCM is achieved with the holistic management and integration of suppliers into product and manufacturing activities. Better logistics and transport system reduce the cost and inventory within and outside the organizations involved in supply chain (Lamming, 1993). The different views of researcher’s present view with are restricted to the relationship between the buyers and sellers. In a supply chain it is important to have a network of customers, suppliers, transport companies and even the competitors to unite in order to serve a purpose of common interests to save and cut time and resources (Dolatabadi, bazrpash, 2006). A summarized definition is provided by Stock and Boyer (2009). Their definition is based on a “The management of a network of relationships within a firm and between interdependent organizations and business units consisting of material suppliers, purchasing, production facilities, logistics, marketing, and related systems that facilitate the forward and reverse flow of materials, services, finances and information from the original producer to final customer with the benefits of adding value, maximizing profitability through efficiencies, and achieving customer satisfaction” (Stock and Boyer 2009,…show more content…
Combination of the flow of information and material to make best use of its Supply Chain is helpful to stay in competition with their competitors (Feldman & Muller,2003). Effectively undertaking the activities of Supply chain make it more effective and efficient. Purchasing, quality and customer relations are a part of SCM. SCM practices ten et al, (1998). Joseph et al (1999), tells that nine variables of SCM practices are Organizational Commitment, Human Resource Management, Quality Information System, Quality Policy, Supplier Integration, Operating Procedures, Training, Role of Quality Department and Technology Utilization. Customer Satisfaction, Quality Improvement, Cost Customization; Delivery Speed, New Product Introduction, Service Level Improvement And Lead Time Reduction are some dimensions of Supply chain practices as stated by (Charlene A.S Yauch (2011).Due to advance IT system enhanced the Supply chain towards more complexity but still needed to be updated. The Supply Chain encompasses all activities from flow of materials from procurement of raw material to distribution and to the end user through detailed flow of information among all concerned (Hadfield and Nichols, 1999). Chopra and Meindl, 2002 stated that a SC is basically a series of stages which eventually lead to meeting the demands of a customer, directly or
Open Document