concept of supply chain management main dimension and major dicsions

Purchasing & supply involves all of those management processes and
operations needed to ensure that an organisation is able to obtain cost-
effectively from outside sources all of the products and services that it
requires. This is key to managing a firm’s integration into the supply chain.


Porter’s value chain within the enterprise
PRIMARY VALUE-ADDING ACTIVITIES
Inbound Outbound Marketing
Production Service
Logistics Logistics & Sales




Margin
IT systems
ACTIVITIES
SUPPORT




Human resources management & training
Research & development
Purchasing & contracting
Finance, planning, etc.



ITC M1:U1:1.1-1

, Suppliers In company Customers
Supply chain management




Physical flows
Information flows
Financial flows

Integrated
logistics


Physical flows
Information flows

Materials management & physical distribution
(incl. Purchasing)


ITC Physical flows M1:U1:1.1-2