Supply Chain Management
Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fit into one or more supply chains and has a role to play in each of them. The pace of change and the uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participate in and to understand the roles that they play. Those companies that learn how to build and participate in strong supply chains will have a substantial competitive advantage in their markets. Supply chain management (SCM) is the discipline that manages supplies and processes through all of the stages of a project, product or business deliverable.
Business material has a journey as it moves from one state to the next until it’s ready to be delivered to the customer or stakeholder. Then there’s the logistics of taking the finished product from one place to another. Getting through these various stages efficiently requires control that’s where supply chain management comes in. Every aspect of business is managed to make the most of the resources involved and be as productive as possible. People are managed and supplies require management as well. Whether those supplies are goods or services, they must be accounted for and carried through from start to finish with deliberate control.
Supply Chain Management (SCM) maximizes profit by integrating three key flows across the boundaries of the companies that form the supply chain: flow of value (product/materials), information, and funds. Successful integration or coordination of these three flows produces improved efficiency and effectiveness for business organizations. In theory, supply chains can work as cohesive, singularly competitive units similar to a large, vertically integrated firm, without significant financial investments by the members of the chain.
The basic difference between vertically integrated firms and a supply chain is that firms in a supply chain are relatively free to enter and leave supply chain relationships if these relationships are no longer proving beneficial. This poses challenges; supply chains are often very dynamic or fluid, partners can change, each partner will look out for its long term advantage, and this can also cause problems in effectively managing supply chains. While supply chain management may allow organizations to realize the advantages of vertical integration, certain conditions must be present for successful supply chain management to occur. It also creates competition amongst supply chains and supply chain partners, therefore, supply chains can operate more effectively than many vertically integrated conglomerates.
Upon Completion of this course, learners will be able to:
- Understand supply chain management and process involved.
- Describe how supply chain networks operate.
- Explain different aspects of supply chains management.
- Describe what is meant by integrated supply chain networks.
- Describe best practices in supply chain networks.
- Understand how sustainable supply chain management works.
- Explain Procurement Management
- Describe Warehouse Management
- And many more