A supply chain comprise of entities involved in two way direct transactions, leading to movement of products, services, finances, or information from a source to end-user/consumer. The management of flow of goods, services, or information is called Supply Chain Management (SCF).
Supply Chain Management covers diverse activities: What to buy?; When to buy?; How much to buy?; From whom to buy?, and just-in-time-manufacturing in order to complete the business cycle.
Physical Supply Chain transaction begins with a purchase order followed by booking request for execution of order, based on inventory check. Containers, which move on the road to the port of loading, are loaded onto ship that sails to the destination port for disembarking goods. Post off-loading containers move to Distribution Centres (DC) for delivery to end-users.
Characteristics of Supply Chain Management
Institutions: Macro includes Trade, logistics service, Industry and Suppliers whereas Micro covers Operations activities.
Functions: It covers Procurement & purchase, Production and logistics.
Instruments: It means tools for planning, steering and controlling operating activities.
Perspective: It takes care of Production, Marketing, Logistics and Suppliers.
Goals: It includes operating, optimizing and performance for material and information flow.
Measures: It assesses Return on Investments, business cycle time, Time to deliver/Time to market, and Balanced Scorecard.
Inference: Supply Chain Management is essential from the organisation perspective. Companies with geographically extensive supply chains connecting the entire group of suppliers, distributors, logistics service provider and Industry are likely to be more innovative and productive. Coordination of internal functions of Sales, Marketing, Operations, Production and Finance is equally import for effectiveness of the business cycle.
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