Supply Chain Management
Supply Chain Management -- is the management of the interconnection
of organizations that relate to each other through upstream and
downstream linkages between the processes that produce value to the
ultimate consumer in the form of products and services” Slack et al
(2010). It is everything and anything to do with managing the supply
network.
Some objectives of the supply chain network –
1. Every link in the chain should add value to the product/service sold
to the end-customer.
2. SCM aims to maximize this value addition at every step through
the decision it takes and activities it undertakes.
3. Every link tries to take a margin for the value-added and contract
negotiations and power relationships become important here.
4. SCM should be in line with the business strategies.
The Strategic Supply Wheel helps us to understand how an organization’s
capabilities line up with its corporate and supply strategy.
SCM Activities – It encompasses all the activities related to managing all
of the operations from the supply side and the demand side.
1. The Supply Side – this constitutes of purchasing/procurement and
supply management. Decisions like selecting the supplier and
further development and sourcing strategies are made under this.
2. The Demand Side – this includes physical distribution and logistics
management. Decisions like depot location, routing and techniques
to minimize costs are made under this.
Supply Networks -- A supply network is a view of the linkage of all the
operations that are responsible for transforming inputs (from suppliers)
into outputs (to customers). It involves the movement of goods/services
and information from the source (suppliers – ‘upstream’) to the end
consumer (customers – ‘downstream’). The functions are inter-linked and
form a hierarchy.
Importance of a Supply Network Perspective –
Supply Chain Management -- is the management of the interconnection
of organizations that relate to each other through upstream and
downstream linkages between the processes that produce value to the
ultimate consumer in the form of products and services” Slack et al
(2010). It is everything and anything to do with managing the supply
network.
Some objectives of the supply chain network –
1. Every link in the chain should add value to the product/service sold
to the end-customer.
2. SCM aims to maximize this value addition at every step through
the decision it takes and activities it undertakes.
3. Every link tries to take a margin for the value-added and contract
negotiations and power relationships become important here.
4. SCM should be in line with the business strategies.
The Strategic Supply Wheel helps us to understand how an organization’s
capabilities line up with its corporate and supply strategy.
SCM Activities – It encompasses all the activities related to managing all
of the operations from the supply side and the demand side.
1. The Supply Side – this constitutes of purchasing/procurement and
supply management. Decisions like selecting the supplier and
further development and sourcing strategies are made under this.
2. The Demand Side – this includes physical distribution and logistics
management. Decisions like depot location, routing and techniques
to minimize costs are made under this.
Supply Networks -- A supply network is a view of the linkage of all the
operations that are responsible for transforming inputs (from suppliers)
into outputs (to customers). It involves the movement of goods/services
and information from the source (suppliers – ‘upstream’) to the end
consumer (customers – ‘downstream’). The functions are inter-linked and
form a hierarchy.
Importance of a Supply Network Perspective –
