Back 2 Basic Continues......

"What is Supply Chain Management ?" so we understood what is Supply chain and lets see what is Management and why is it necessary.

Supply chain management (SCM), the management of the flow of goods and services, money and information between businesses and locations, and includes the movement and storage of raw materials, of work-in-process inventory, and of finished goods as well as end to end order fulfilment from point of origin to point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.

So just to simplify Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

SCM Management represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings.

So let’s understand by example the importance of SCM to its business, XYZ Company. placed focused effort on transforming its supply chain in 2016. The company operates one of the largest pharmacy chains in the United States and needs to efficiently manage and revise its supply chain so it stays ahead of the changing trends and continues to add value to its bottom line.

As of July 5, 2016, XYZ has invested in the technology portion of its supply chain. It implemented a forward-looking SCM that synthesizes relevant data and uses analytics to forecast customer purchase behavior, and then it works its way back up the supply chain to meet that expected demand.

For example, the company can anticipate flu patterns, which allow it to accurately forecast needed inventory for over-the-counter flu remedies, creating an efficient supply chain with little waste. Using this SCM, the company can reduce excess inventory and all of the inventories' associated costs, such as the cost of warehousing and transportation.

Hope you guys understand the basics next we will talk about the different verticals of Supply Chain.

Back 2 Basics

"What is Supply Chain ?" most basic question asked by the few people. First lets understand what is Supply Chain and then lets move forward to management. A supply chain is a network between a company and its suppliers to produce and distribute a specific product to the final buyer. So lets simplify it further and let me try to illustrate from the figure below L et's take the example of a customer walks into department Store to purchase beauty soap. The supply chain begins with the customer and his need for beauty soap. The next stage of this supply chain is the retail store where the customer visits. Store stocks its shelves using inventory that may have been supplied from a finished goods warehouse managed by a party (vendor) or received from third party (vendor). The vendor in turn is stocked by the manufacturer. The manufacturing plant receives raw material from a variety of suppliers who may themselves have been supplied by lower tier suppli...

Supply Chain Management Corner

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