| Supply chain management can be defined as the | | | | goods as well as work in progress. |
| process of planning, implementing and monitoring the | | | | The flow of the supply chain execution is always bi |
| everyday operations of a supply chain. Supply chain | | | | directional and basically manages and coordinates |
| management is an all encompassing process as it | | | | movement of material, information and finances of |
| undertakes the management of availability of raw | | | | the supply chain. There are some key supply chain |
| materials, their processing into finished goods and the | | | | management processes that have been identified. |
| distributions of the same. The aim of all this is to | | | | They are: |
| provide the highest level of satisfaction to the | | | | * Management of customer relations. |
| customer and thus increase the business of the | | | | * Management of customer service |
| company. And with the increasing complexity of the | | | | * Management of demands. |
| supply chain, supply chain management has also | | | | * Fulfillment of orders. |
| become about coordinating and collaborating with the | | | | * Manufacturing flow management. |
| different trade partners now involved in the supply | | | | * Management of supplier relations. |
| chain. | | | | * Developing the product and commercializing it. |
| Supply chain management is supposed to be | | | | * Managing returns. |
| undertaken by the high level management committee | | | | Other key business processes which are used as |
| of the company. The employees have to willingly | | | | supply chain procedures and are a vital part of the |
| adhere to their decisions in order to bring about | | | | process and include: |
| maximum efficiency in the supply chain. | | | | * Customer service management: Steps used by |
| Supply chain management decisions are made on | | | | companies to build successful customer relations |
| three different levels- the tactical, strategic and | | | | include focusing on mutually satisfying goals; |
| operational levels. Strategic level involves long term | | | | establishing and maintaining customer relations; |
| decisions while tactical level includes medium term | | | | produce feelings of positivity and trust between the |
| decisions while operational level is concerned with | | | | customers and organization. |
| very short term day-to-day operational concerns. | | | | * Procurement processes. |
| The problems that the supply chain system is | | | | * Product developing and commercializing: This |
| supposed to address includes the following: | | | | includes coordinating with customer relationship |
| * Distributor Network Configuration: Quantities and | | | | management to identify customer articulated needs, |
| locations of people involved with the entire process | | | | selecting suppliers and materials and developing |
| of the supply chain including the suppliers, customers, | | | | production technology to integrate and produce the |
| warehouses, production facilities and distribution | | | | best supply chain flow. |
| centers. | | | | * Manufacturing flow management processes. |
| * Strategies for distribution: Centralized, direct | | | | * Physical distribution. |
| shipments, push and pull strategies, cross docking and | | | | * Outsourcing and partnerships. |
| third party logistics. | | | | * Performance measurement regarding cost, |
| * Information: Integrating systems and processes | | | | productivity measures, customer service, asset |
| through supply chain to share relevant and significant | | | | measurement and quality. |
| information consisting of demand signals, forecasting, | | | | Together with all of these the supply chain |
| transportation and of course, inventory. | | | | management system has managed to put into place |
| * Management of inventory: Number and location of | | | | an integrated supply and demand management within |
| inventory and also covers raw materials, finished | | | | and across business firms. |