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Supply Chain Management

August 3, 2009

It is the process of planning, implementing, and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.
Definition :American professional association
Supply Chain Management is the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.
Supply chain management must address the following problems:
?? Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers, warehouses and customers.
?? Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics.
?? Information: Integration of systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation etc.
?? Inventory Management: Quantity and location of inventory including raw materials, work-in-process and finished goods.
?? Cash-Flow: Arranging the payment terms and the methodologies for exchanging funds across entities within the supply chain.
Supply chain execution is managing and coordinating the movement of materials, information and funds across the supply chain. The flow is bi-directional.
Supply chain management software (SCMS) is a business term which refers to a range of software tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes.
While functionality in such systems can often be broad ??? it commonly includes:
Customer requirement processing
Purchase order processing
Inventory management
Goods receipt and Warehouse management
Supplier Management/Sourcing

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