MIS - Supply Chain Management
Supply chain management is the systemic, strategic coordination of the traditional business functions and tactics across these business functions - both within a particular company and across businesses within the supply chain- all coordinated to improve the long-term performance of the individual companies and the supply chain as a whole.
In a traditional manufacturing environment, supply chain management meant managing movement and storage of raw materials, work-in-progress inventory, and finished goods from point of origin to point of consumption.
It involves managing the network of interconnected smaller business units, networks of channels that take part in producing a merchandise of a service package required by the end users or customers.
With businesses crossing the barriers of local markets and reaching out to a global scenario, SCM is now defined as −
Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.
SCM consists of −
Objectives of SCM
To decrease inventory cost by more accurately predicting demand and scheduling production to match it.
To reduce overall production cost by streamlining production and by improving information flow.
To improve customer satisfaction.
Features of SCM
Scope of SCM
SCM Processes
- Customer Relationship Management
- Customer Service Management
- Demand Management
- Customer Order Fulfillment
- Manufacturing Flow Management
- Procurement Management
- Product Development and Commercialization
- Returns Management
Advantages of SCM
SCM have multi-dimensional advantages −
