As the twentieth century dawned, ford motor company set the rules for modern manufacturing. Company, 2 if a company defined in clause 1 does not manufacture the products, a company that manufactures the products, and 3 such other companies as may be designated by the corporate executive officer in charge of csr of sony corporation. Supply chain management scm is the active streamlining of a business supplyside activities to maximize customer value and gain a competitive advantage in the. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. Each is broken down into a sequence of strategic sub processes, where the blueprint for managing the process is defined, and a sequence of operational subprocesses, where the process is actualised every subprocess is described by. It plays a vital role in addressing the growing complexity of todays global supply chains. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes. Home electronics the new softwaredefined supply chain. Understanding supply chain resilience supply chain 247. The three main flows of the supply chain are the product flow, the information flow and the finances flow. A customer focused definition is given by hines 2004.
Just as you cant manage what you dont measure, you cant plan and execute what you havent clearly defined. A supply chain is a network of entities and people that work directly and indirectly to move a good or service from production to the final. Common and accepted definitions of supply chain management are. Supply chain management scm is the active streamlining of a business supply side activities to maximize customer value and gain a competitive advantage in the.
It is the process of deciding what, when, and how much should move to where. Supplychain management was then further defined as the integration of supply chain activities through improved supplychain relationships to achieve a competitive advantage. To compete in this fastapproaching future, electronics companies and governments must understand and prepare for this new softwaredefined supply chain. Edward marien, professor emeritus at the university of wisconsin. Defining supply chain management mentzer 2001 journal. These kras are further defined with specific metrics. Ae defining the concept of supply chain management and its. The benefits of this type of planning include less wastage in the case of lower demand. Defining supply chain management, journal of business. Resilience is at the heart of current supply chain management thinking, and understanding the concept, and where to invest in resilience, can lead to supply chains that quickly respond to and recover from costly disruptions. It requires supply chain visibility defined as the awareness of, and control over, specific information related to product orders and physical shipments, including transport and logistics activities. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser.
In this type of supply chain logistics, inventory is acquired on a needbasis. Supply chain management involves coordinating and integrating these flows both within and among companies. Preparing for the disruptive transformation of electronics design and manufacturing. Explaining supply chains to people outside the field may be one of the toughest, yet most frequent challenges faced by industry professionals. As called out by dod supply chain materiel management procedures in dod manual 4140. What is push and pull strategy in supply chain management.
Supply chain management scm is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. The concept of working together with the aim of improving supply chain performance by aligning the plans and the objectives of individual enterprises. For ontime delivery, for example, the metric might be customer. A supply chain is the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, through to its eventual delivery to the end user. Given these definitions, for the purposes of this paper, a supply chain is defined as a set of three or more entities organizations or individuals directly involved in the upstream and downstream flows of products, services, finances, andor information from a source to a customer.
As defined by ellram and cooper 1993, supply chain management is an integrating philosophy to manage the total flow of a distribution channel from. Every supply chain professional is a potential supply chain leader, whether formallywhere leader is part of a position titleor informally, as it pertains to his or her job responsibilities. In the late 1990s, supplychain management scm rose to prominence, and operations managers began to use it in their titles with increasing regularity. Other dimensions must be considered and balanced when designing the supply chain, including. Collaboration of singlemanufacturer multibuyer inventory status with credit option. H awad and others published supply chain integration.
A supply chain is a system of organizations, people, technologies, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain management introduction tutorialspoint. Scm involves coordinating and integrating these flows both within and among companies. Known as the backbone of global trade, supply chain logistics is a network of transportation, warehousing, and inventory. In contrast, supply chain management, as defined by the council of supply chain management professionals cscmp, encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. Dhs management directives related to supply chain management. A new introduction to supply chains and supply chain. The department of defense dod supply chain metrics guide is the main source for detailed information on the supply chain metrics used by the department. Definition of supply chain and supply chain management. A definition of supply chain logistics because so many organizations make up a supply chain, the logistics involved in getting products and services into the hands of the consumer can be mindboggling. Supply chain management supply chain management managing complex and dynamic supply and demand networks. To compete in this fastapproaching future, companies and governments must understand and prepare for this new software defined supply chain. Compromising software code through cyber attacks, insider threats, and other close access activities at any phase of the supply chain to infect an unsuspecting customer hackers are circumventing traditional cyber defenses to compromise software and delivery processes.
Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve a competitive advantage. Supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends at the products consumption. Pdf defining the concept of supply chain management and its. The supply chain is defined here as a part of a network that supplies a specific product from raw material to final customer it is a whole commercial chain embedded in the network hertz 2001 with a common objective of efficiency and effectiveness. Align the supply chain strategy with the business strategy most companies develop a supply chain strategy after the business strategy has been defined. Supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends at the products. We recommend the definition of supply chain management developed and used by the global supply chain forum. It is said that the ultimate goal of any effective. In this whitepaper, weve defined the reverse supply chain process, the steps involved and how it can be used as a strategic business weapon. What is supply chain management scm and why is it important. Supply chain management scm is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.
Before an organization tries to focus on supply chain management, its leaders must determine what the supply chain encompasses. Examples of how the consumer electronics, automotive and retail industries handle reverse logistics are offered. Apr 22, 2018 pull supply chain under pull supply chain, the process of manufacturing and supplying is driven by actual customer demand. If this is what a supply chain is then we can define supply chain man agement as.
The term supply chain can thus be defined as a group of interconnected participating companies that add value to a stream of transformed inputs from their source of origin to the end products. The term supply chain management is relatively new. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management is the integration of key business processes from end user through. Entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer. Exploring efficiency and effectiveness in the supply chain. Oct 17, 2019 dhs management directives related to supply chain management. Compromising software code through cyber attacks, insider threats, and other close access activities at any phase of the supply chain to infect an unsuspecting customer hackers are circumventing traditional cyber defenses to. It also comprises movement and storage of raw materials that are involved in work in progress, inventory and fully furnished. Thus supply chain managers are constantly evaluating and tradingo. As mentioned above, viewed from this perspective, resilience consists of two critical but complementary system components. Defining supply chain measures starts with identifying key result areas kras where performance has a significant impact on organizational success, says dr. Importantly it also include coordination and collaboration with channel.
Smith school, university of maryland, college park. Supply chain management scm has evolved from manual, logistics and mechanizationfocused optimization to modern, digital, and automated integration and coordination of all supply chain elements. Primarily, it facilitates and optimizes the flow of. It also comprises movement and storage of raw materials that are involved in work in progress, inventory and fully furnished goods. May, 2020 supply chain management professionals play a key role in capturing customer demands, creating forecasts, developing schedules, ordering and managing inventory, controlling production orders, and maximizing customer satisfaction. Supply chain management scm definition investopedia. Understanding your value chain, and how china fits into it, can lead to tremendous tax savings. In business and finance, supply chain is a system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer. Finally, cost is not the only element of a supply chains performance, as well discuss later. Weber, two consultants in the field of logistics, introduced the concept of supply chain management scm in literature at the beginning of the 1980s. The global supply chain forum gscf developed a definition of supply chain management cooper, m et al 1997.
Pdf the purpose of this paper is to describe an extended approach to supply chain management by exploring some of the more prevalent. It usually focuses on inventory management and ordering decisions in distributed intercompany settings. It also includes the crucial components of coordination and collaboration with channel partners. In addition to defining the supply chain, several authors have further defined the concept of supply chain management. Supply chains now deal with reverse logistics to handle returned products, warranty repairs, and recycling. Supply chain management is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.
Jan 06, 2017 a definition of supply chain logistics because so many organizations make up a supply chain, the logistics involved in getting products and services into the hands of the consumer can be mindboggling. Supply chain management scm defined supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Cmcsp defines scm as encompasses the planning and management of all activities involved in sourcing and. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer. As defined by ellram and cooper 1993, supply chain management is an integrating philosophy to manage the total flow of a distribution channel from supplier to ultimate customer. To the authors, supply chain resilience is the ability of a supply chain to both resist disruptions and recover operational capability after disruptions occur. Pull supply chain under pull supply chain, the process of manufacturing and supplying is driven by actual customer demand.
Operational rules mean the operational rules for the sony supply chain code of conduct defining. A supply chain refers to everything required to produce a product from raw materials, to manufacturing. Supply chain management and associated terms, through a variety of secondary sources. Supply chain management fundamentals supply chain management professionals play a key role in capturing customer demands, creating forecasts, developing schedules, ordering and managing inventory, controlling production orders, and maximizing customer satisfaction. Supply chain integration is a close alignment and coordination within a supply chain. Supply chain coordination aims at improving supply chain performance by aligning the plans and the objectives of individual enterprises. He serves on intermodal and education committees of trb, and has published in transportation in the new millennium, transportation journal, logistics technology international, defense. It comprises of vendors that supply raw material, producers who convert the material into products, warehouses that store, distribution centers that deliver to the retailers, and retailers who bring the. Among supply chain professionals surveyed by apics, most responded that developing supply chain resources, potential. This is a brief introductory tutorial that explains the methodologies applied in the rapidly. Definition and challenges find, read and cite all the research you need on researchgate. Supply chain concepts defining the supply chain informit. The concepts breadth often leaves ample space for disagreement about supply chains role within a business.
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