Posted on October 22, 2010.
Overview of the supply chain INTRODUCTION
Supply Chain Management (SCM) is the systemic, strategic coordination of traditional business functions within a given society and all companies within the supply chain in order to improve long-term performance of individual firms and the supply chain as a whole. A supply chain consists of all parties involved, directly or indirectly in the performance of a customer request. The supply chain includes not only the manufacturer and the supplier, but also transporters, warehouses, retailers and customers themselves. Within each organization, as a manufacturer, supply chain includes all functions involved in receiving and filling a customer's request. A supply chain may involve a series of stages.
These steps in the supply chain includes
(I) Customers
(Ii) retailers
(Iii) the total wholesalers / distributors
(Iv) Manufacturers
(V) component suppliers / Raw-materials
NEED FOR MANAGEMENT OF THE SUPPLY CHAIN
Companies have increasingly from all sources for their supplies. This globalization of supply management has forced companies to seek more effective ways to coordinate the material flows entering and leaving the company.
Businesses and distribution channels to compete more today on the basis of time and quality. Having a flawless product to the customer faster and more reliable than the competition is no longer considered a competitive advantage, but simply a requirement to be on the market. Customers are demanding products that are delivered faster, exactly on time and without damage. Each of these requires closer coordination with suppliers and distributors.
The overall orientation and competition increased performance in function associated with rapidly changing technology and economic conditions all contribute to market uncertainty. This uncertainty requires greater flexibility on the part of individual companies and distribution channels, which in turn demand greater flexibility in the channel relationship.
All these factors have made the concept of Supply Chain largest management companies.
PURPOSE OF THE SUPPLY CHAIN
The objective of every supply chain is to maximize the overall value generated. The value of a supply chain generates is the difference between what the final product is a customer value and cost of supply chain committed to fulfill customer demand. For most commercial supply chains, the value will be strongly correlated with the supply chain profitability is the difference between revenue generated by the client and the overall cost throughout the supply chain.
FOR A PROCESS OF SUPPLY CHAIN
The process of the supply chain occurs in two ways, Cycle Show and Push / Pull view.
1. See Round
The process of the supply chain are divided into a series of cycles, each performed at the interface between two phases of the supply chain. See the process cycle of the supply chain includes
the sales order cycle
replenishment cycle
manufacturing cycle
procurement cycle
2. Push / Pull view
The process of the supply chain are divided into two categories according to whether they are executed in response to a sales order or in anticipation of customer orders. process of attraction are i.