What Is Supply Chain Management?
Simply put, supply chain management can be defined as a process which involves planning, monitoring and implementing all of the every-day operations for a supply chain. Supply chain management is a process which is all-encompassing in the sense that it deals with the management of raw materials, processing, finished goods and distribution. The aim of this process is simply to provide the highest possible level of satisfaction to the customers in order to increase how much business the company receives. And as the supply chain becomes more complex, supply chain management can be adapted and coordinated to deal with new and different trade partners, suppliers and vendors.
Supply chain management Decisions
Supply chain management is essentially meant to be undertaken by the highest level management committee within the company. In order to bring about the maximum amount of efficiency within the supply chain, all of the employees within a company have to be willing to adhere with the decisions made by higher-ups. There are three different levels upon which Supply chain management decisions are made. The first is the tactical level, the second is the strategic level and the third is the operational level.
Levels of supply chain management The strategic level of supply chain management involves decisions made on a long term basis. The operational level on the other hand focuses on short term and day to day concerns with the operation. The supply chain system is meant to address many problems, including strategies for distribution, the configuration of the distributor network and the management of industry. Flow of the Supply Chain The supply chain is always executed in a bi-directional manner in order to coordinate and manage the movement of information, material and finances along the entire supply chain. There are many processes which have been identified as key processes for supply chain management, including the management of customer relations and customer service, the management of demands and the fulfillment of orders, the manufacturing of flow management and development and commercialization of products, and the management of supplier relations and returns. There are other just as useful key processes which serve as a vital part of the overall process, including customer service management, procurement processes, physical distribution product development and commercialization, outsourcing, partnerships, and the measurement of performance.
Together with all of these processes, the supply chain management system is able to facilitate the management of integrated supply and demand across many different types of firms.
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