What is Supply Chain Management? Supply chain management – SCM was a term invented by Keith Oliver, a consultant belonging to the firm Booz Allen Hamilton, in the year 1982, to describe the overall process of planning, implementing, and controlling what goes on at the supply chain in order to satisfy customers’ needs in a quick, efficient manner. As carried out in practice, supply chain management can involve everything from overlooking the exchange and storage of raw materials, taking inventory of all work that is in process, as well as the movement of goods from their point of origin to…

Supply Chain Management Functions The concept of supply chain management is to overlook and manage the transition of raw goods in to finished products, something that has become necessary over the years as more corporations have become increasingly flexible and dependent on outsourcing the production of their goods to other corporations, who are able to do the job at a more affordable rate. Supply chain management makes sure that this process is done in an efficient manner, and that the quality of the finished product offered to the consumer is kept in line with that company’s standards. As a result, more…

Supply Chain Business Integration Supply chain management, when successful, will take in to account the necessity to integrate activities in to key supply chain processes, rather than simply managing individual functions. A successful integration effort requires collaboration between buyers and suppliers, as well as teaming up on the development of new products, sharing information, and developing common systems. Information must flow continually in order to operate a successful integrated supply chain. When it works effectively, this helps everyone attain the best product flows. Implementing a process-based approach to SCM involves maintaining quality customer relationship and customer service management, order fulfillment,…

Supply Chain Distribution Management It is important to make a wise, informed decision about how extensive your business’s distribution channel shall be. If you want to achieve wider distribution, then the cost will be a lot lower if you use intermediaries. In fact, the vast majority of product manufacturers are unable to sell directly to customers, as it would be way too costly for them. The bigger the producer, the more intermediaries should be used in order to have a cost effective operation. Most of the concepts surrounding distribution channels are related to costs. Many of the practical matters relating…

Supply Chain Management Components The concept of supply chain management is to overlook and manage the transition of raw goods into finished products, something that has become necessary over the years as more corporations have become increasingly flexible and dependent on outsourcing the production of their goods to other corporations, who are able to do the job at a more affordable rate. Supply Chain Management Components are broadly classified as below 1. The Basics 2. Supply Chain Management Integration 3. Supply Chain Management Software 4. Supply Chain Management RFID Solutions The Basics Supply chain management makes sure that this process…

Supply Chain Integration Supply Chain Management, when successful, will take in to account the necessity to integrate activities in to key supply chain processes, rather than simply managing individual functions. SCM Integration A successful integration effort requires collaboration between buyers and suppliers, as well as teaming up on the development of new products, sharing information, and developing common systems. Information must flow continually in order to operate a successful integrated supply chain. When it works effectively, this helps everyone attain the best product flows. Implementing a process-based approach to SCM involves maintaining quality customer relationship and customer service management, order…

Supply Chain Management Software It is quite possible that supply chain management software is the most fractured software application group in the world. While the vast majority of supply chain steps include their own specific kinds of software, a lot of vendors have put together different chunks of this software together under a single roof in order to make the job easy. But there is no such thing as a supply chain management total software program that will be perfect for every single business. The vast majority of organizations will have to figure out a way to keep track of…

Supply Chain Management in a Nutshell Supply and Demand Management In the field of micro-economics, the idea of supply and demand is used as a sort of building block for a multitude of economic theories. Fundamentally, it serves as a description for a market interaction between the producer and consumer of an object in relation to how much the goods cost. Antoine Augustin Cournot first articulated the idea of supply and demand, but it was Alfred Marshall who would make the idea popular. The fundamental prediction of the supply and demand model is that in a competitive free market economy,…

Supply and Demand Schedules The relationship between the number of goods supplied by the producer and the current market price is called the supply schedule. It is represented graphically by a curve. As the supply tends to be proportional to the price, supply curves are nearly always sloping upwards. Thanks to the law of diminishing marginal returns, the supply curve’s slope is almost always increasingly upwards sloping. Due to the equi-marginal principle, a producer’s supply curve is almost always equal to the marginal cost curve of the producer. So an entire market’s supply curve can be seen as the sum…

Supply Chain Management : Just In Time Introduction In the realm of supply chain management, “Just in time” refers to an inventory strategy that it used to improve a business’s return on investment through a reduction of in process inventory and all related costs. Just in time is driven by a series of signals, referred to as Kanban, which tell production processes when it is necessary to make the next part. Kanban can be visual signals, but are generally “tickets.” When implemented in a correct fashion, “Just in time” can help a producer improve in such areas as quality, efficiency, as…

Supply Chain Management : Inventory What is Inventory? Inventory refers to the list of goods and materials in stock by a particular company. The purpose of inventory is to manage and conceal the fact that oftentimes manufacture delay lasts longer than the delays in delivery. Inventory also eases the imperfections that result as part of the normal manufacturing of a product. These imperfections can lower production efficiencies in those instances where production is idle owing to a lack of needed materials. Business Inventory The following stock reasons might apply to any stage of the product or any owner. Buffer Stock:…

Supply Chain Management Software It is quite possible that supply chain management software is the most fractured software application group in the world. While the vast majority of supply chain steps include their own specific kinds of software, a lot of vendors have put together different chunks of this software together under a single roof in order to make the job easy. There is no such thing as a supply chain management total software program that will be perfect for every single business. The vast majority of organizations will have to figure out a way to keep track of supply,…

Supply Chain Management Marketing History When it comes to the marketing end of supply chain management, it is first important to understand what marketing is, what it entails, as well as the history and criticism of marketing. In fact, it is hard to say exactly what marketing is, as it does not have a commonly agreed upon definition. Today, within the realm of academia, debates as to marketing’s true nature and purpose continue to rage on. But to put it in practical terms, marketing entails the management and social process by which different products and services are exchanged in order…

Supply Chain Management Marketing Techniques Introduction A company that is market oriented first figures out who its customers will be, then build their products or services around that market group. Marketing theory has it that a specific customer uses a product or service because he or she has a particular need, and that by using that product or service their needs will be fulfilled. In the realm of supply chain management, marketing focuses on two specific tasks: recruiting new clients and retaining and expanding relationships with current clients. The former task is called acquisition, while the latter is referred to…

Supply Chain Management : Distribution Alongside product management, promotion, and pricing, distribution is one of the four key components of marketing. In simple terms, distribution provides an inlay between the producer of a product and the seller of that product. After a product is made, it is usually then sold to a distributor, who in turn will sell the product either directly to customers, or to retailers who will in turn sell it to customers. What is Distribution? Throughout history, distribution has been related to questions in the field of logistics, namely, how does one get a particular product to…

Supply Chain Management : Industrial Engineering The area of engineering that deals with developing, improving, implementing, and evaluating integrated systems that involve finances, information, knowledge, individuals, energy, processes, materials, and equipment is called industrial engineering. Those working in this field must draw upon the precepts of engineering synthesis and analysis, while also having a firm grounding in the social sciences, math, and the physical sciences. Using this wide breadth of knowledge, industrial engineers are able to specify, predict, and evaluate what the results to be attained from such systems shall be. When working with lean manufacturing, an industrial engineer will…

Supply Chain : Quality Control in Industrial Engineering When it comes to the industrial engineering aspect of supply chain management, quality control and quality assurance are two duties that must be undertaken. The former refers to the process whereby measures are taken to make sure defective products and services are not produced, and that the product design meets the quality standards set out at the outset of the project. The latter, quality assurance, entails overlooking all aspects, including design, production, development, service, installation, as well as documentation. Quality control is the field that ensures it gets done right the first…

Supply Chain Management : Enterprise Resource Planning The goal of ERP (Enterprise Resource Planning) systems is the successful integration of a company’s data and processes in to a single unified system. Usually, several components of computer software and hardware are employed in order to realize this goal. A unified database must be employed in order to store data for the various modules of the system. History of Enterprise Resource Planning Originally, the term “enterprise resource planning” was employed to designated systems used by enterprise wide resources. It was originally used in the context of manufacturing, but in today’s world, enterprise…

Supply Chain : Problems with Radio Frequency Identification Introduction The concept of Radio Frequency Identification was first developed in the 1950s as part of the Toyota Production System. Over the years, Radio Frequency Identification has evolved to the extent that nearly all sophisticated supply chain management experts tend to employ it. As in all fields and all forms of technology, supply chain managers working with Radio Frequency Identification are constantly working to improve it. It is thought that soon, adopting sensor based Radio Frequency Identification technology will allow for the creation of a sensor connected, real time manufacturing outlet. Through…

Supply Chain Management Degree Programs What a Supply Chain Manager Does Every business must have supplies and materials in order to run a successful operation. Supply chain managers are employed to ensure that needed suppliers are always available to employees. The job entails dealing with suppliers, meeting with business executives in order to make important contractual decisions, as well as predicting what the company’s needs shall be in the future. Indeed, a good supply chain manager is also a good negotiator in that he or she should be able to get quality materials for their company at a low price….

Microsoft Dynamics Microsoft Dynamics for Supply Chain Management Every successful business owes it to the efficiency and organization of the business management. Whether it is a large or small business, the organization of tasks is the single most important factor which contributes to the well being of the company. How do we get our business organized? It obviously can’t be done by opening a Microsoft Excel document and listing out the things to do. You need much more than that and using the right software is very important. Not just any software, but intelligent software which understands your exact business…

Microsoft Dynamics Applications Microsoft Dynamics is a line of Financial, customer relationship, and supply chain management solutions. It is software that provides complete solutions for businesses and organizations. Microsoft Dynamics has been evaluated by many industry experts who stand by it and vouch for it. It has won many awards for being the best software, from CRM magazine and even Gartner; an independent analyst firm, declared it to be the best software for supply chain management available In different businesses or segments of businesses the Microsoft Dynamics supply chain management software has varied applications. How Microsoft Dynamics for Supply Chain…

SCOR Model The SCOR Model, also referred to as the Supply Chain Operations Reference model, is a type of tutorial used to improve your knowledge and usage of the Supply Chain Management system. It is more of a management tool. The Supply Chain Management Council has designed the SCOR Model in collaboration with other distributors, manufacturers, suppliers and logistics service providers, and therefore the model is best suited for people in this category of business. The SCOR Model compares itself with the best practices in the industry and constantly improvises techniques for distributors, manufacturers and logistic service providers. This allows…

SCOR Model Process The Supply Chain Operations Reference Model, commonly known as SCOR, is a diagnostic tool for the Supply Chain Management. It lets the users know the various processes involved in a business and the important things that lead to customer satisfaction. The Supply Chain Operations reference model has been developed by the SCC, or the Supply Chain Council. The SCOR Model is based on three very important factors. Another note to the reader here is that there are many theories written about the Supply Chain Management functionality, and the Supply Chain Operations Reference Model. Each theory very convincingly…

Why your Supply Chain Costs are too High If you ask most business owners if reducing their costs is important, they won’t hesitate to answer, “Why, yes, of course!” But, when it comes to reducing their supply chain costs, many of these same business owners have no clue what to do, or even where to begin. In this article you’ll learn why your supply chain represents a unique cost-reduction challenge, and what you can do to improve these costs so that your bottom line meets your objectives. Reason 1: Nobody Knows The first reason that supply chain costs are difficult…

Building Better Supply Chain In order for your company to remain relevant in today’s marketplace, it is essential to continually look to evolve your supply chain process. Companies that prosper and minimize their costs while maximizing their profits and keeping customers happy realize that this habit of continual supply chain evolution relies on well thought out and well applied redesign efforts. And this redesign is accomplished by using computer systems to perform detailed analysis and perform more efficient supply chain planning. In this article, you’ll learn what some of these analytical systems can offer your business. Why Redesign? You may…

Which Supply Chain Management Software is Right for your Business? If you’re a Business Leader, Supply Chain Manager or Logistics Executive, you’re probably all too aware of the fact that there’s an abundance of Supply Chain Management (SCM) software products available on the market today. While having so many options to choose from is definitely helpful, it can also lead to a sort of “information overload” when trying to decide which supply chain management software is right for your business. In this article, I’m going to show you the most important things to consider when choosing an SCM software solution…

Supply Chain Optimization With the advances in logistics and supply chain management technology in recent years, there’s been an explosion of interest in the topic of “Supply Chain Optimization”. While many businesses leaders have heard the term used, few know exactly what Supply Chain Optimization is, or how it could help their business. In this article, I’m going to explain what supply chain optimization is, as well as help you decide how it could help your business. What is Supply Chain Optimization? The easy answer to this question is that supply chain optimization is just that – optimizing your supply…

Supply Chain Management Skills Do you have what it takes to be a Supply Chain Manager? Once upon a time, the phrase “managing a supply chain” meant making sure that your warehouse was adequately stocked and that nobody was goofing off in the back. Times have definitely changed. Today, to manage a supply chain means to be part of a complex and rapidly evolving global economy. Technology, escalating standards and changing models of business, as well as entirely new industries have transformed the supply chain landscape forever (nobody even knows whether to call it “supply chain management” or “logistics” –…

Can RFID Help Your Supply Chain? In the past few years, much has been said about Radio Frequency Identification (RFID) technology, and how it will revolutionize the supply chain process, both locally, nationally and globally. If you’re wondering what all the fuss is all about, you’re not alone. This article explains what RFID technology is, who’s using it, how they’re using it, and how it could (or not) help improve your supply chain. What is RFID? Radio frequency identification (RFID) technology is a means of using electronic tags to store data. This electronic data is then transmitted to a scanning…