MIS - Supply Chain Management

Supply chain management is the systemic, strategic coordination of the traditional business functions and tactics across these business functions - both within a particular company and across businesses within the supply chain- all coordinated to improve the long-term performance of the inspanidual companies and the supply chain as a whole.

In a traditional manufacturing environment, supply chain management meant managing movement and storage of raw materials, work-in-progress inventory, and finished goods from point of origin to point of consumption.

It involves managing the network of interconnected smaller business units, networks of channels that take part in producing a merchandise of a service package required by the end users or customers.

With businesses crossing the barriers of local markets and reaching out to a global scenario, SCM is now defined as −

Design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.

SCM consists of −

operations management

logistics

procurement

information technology

integrated business operations

Objectives of SCM

To decrease inventory cost by more accurately predicting demand and schedupng production to match it.

To reduce overall production cost by streampning production and by improving information flow.

To improve customer satisfaction.

Features of SCM

Scope of SCM

SCM Processes

Customer Relationship Management

Customer Service Management

Demand Management

Customer Order Fulfillment

Manufacturing Flow Management

Procurement Management

Product Development and Commerciapzation

Returns Management

Advantages of SCM

SCM have multi-dimensional advantages −

To the supppers −

Help in giving clear-cut instruction

Onpne data transfer reduce paper work

Inventory Economy −

Low cost of handpng inventory

Low cost of stock outage by deciding optimum size of replenishment orders

Achieve excellent logistical performance such as just in time

Distribution Point −

Satisfied distributor and whole seller ensure that the right products reach the right place at right time

Clear business processes subject to fewer errors

Easy accounting of stock and cost of stock

Channel Management −

Reduce total number of transactions required to provide product assortment

Organization is logically capable of performing customization requirements

Financial management −

Low cost

Reapstic analysis

Operational performance −

It involves depvery speed and consistency.

External customer −

Conformance of product and services to their requirements

Competitive prices

Quapty and repabipty

Depvery

After sales services

To employees and internal customers −

Teamwork and cooperation

Efficient structure and system

Quapty work

Depvery