| Have you heard of Just-in-time, TQM, The rise of | | | | probably be the vendor management and the like. It |
| Toyota as a powerful global player in the automotive | | | | is the invisible parts of the supply chain that attain |
| industry, even surpassing the gaping mouths of the | | | | the status of primary importance. Things like labor |
| big three in the United states? You would have | | | | management, procurement, warehouse management, |
| certainly come across the term 'Supply Chain | | | | Order processing, fulfillment and delivery. |
| Management' - It sounds like jargon, doesn't it? Well, | | | | The importance of supply chain management has |
| it isn't so difficult to understand and it is something | | | | been growing steadily over the recent years and |
| most manufacturing ( even services!) industries | | | | more so because of the fact that the companies |
| indulge in today. Supply Chain management basically | | | | have been growing larger and larger in size.Due to |
| means that the process of managing the whole | | | | this enormous increase in size, the companies gain |
| process of finding a suitable raw material, processing | | | | more cost efficiency when they outsource some of |
| it and converting it into something valuable or useful | | | | the functions that they ought to do themselves to |
| that could be sold to the market. | | | | other specialized service companies that do the |
| | | | needful. This enables the larger companies to be |
| The better a company is in managing its resources, | | | | more flexible, focus more on their core competencies |
| the process of locating its raw materials, processing | | | | and create more value for their customers, while |
| them, working on them, the entire production | | | | retaining profits by reducing costs at the same time. |
| process, the out put, the packaging and even the | | | | The ubiquitous, simple to use, nature of the Internet |
| labelling might constitute a simple supply chain | | | | has made it possible to automate some of its supply |
| management case study. | | | | chain management elements with the help of robust |
| According to the CIO Magazine, | | | | supply chain management software ( Though it is |
| Supply chain management (SCM) is the combination | | | | always not so easy to do the implementation and |
| of art and science that goes into improving the way | | | | execution part!). |
| your company finds the raw components it needs to | | | | The extended supply chain - the vendors and their |
| make a product or service and deliver it to | | | | vendors network, has always become a critical link in |
| customers. The following are five basic components | | | | the new era of Modern supply management theory |
| of SCM. | | | | and has taken it to another realm where everything |
| Supply Chain Management has a lot of visible and also | | | | boils down to cost cutting such that the whole |
| invisible elements to it. The glamorous parts might | | | | process can create value for the customer. |