As organizations move goods from source to place of utilization they enjoy utilities of place and time.According to Branch (2009) firms can choose one or combine several modes of transport to effectively move materials or products for scheduled production and smooth operation. Good transportation facilitates supply chain efficiency by delivering goods to the ultimate customer securely and in an economical way. Inbound transportation should plan for expected lead times to best manage delivery timelines. Baker (2010) states that organizations should have shipment visibility while managing inbound transportation. Additionally they should balance trade-off between imports costs and savings made at destination.
This process of supply chain management (SCM) consists of many activities and information flows such as the procurement of materials, the process of manufacturing and packaging, followed by the storage and warehousing of the finished products before being distributed to retailers for the end user’s consumption (Cooper, Lambert & Pagh 1997; Griffin & Thomas 1996). SCM involves the coordination of the following functions: strategic supplier partnerships, quality of information sharing, management of internal functions and loyal customer relationships (Barbosa-Póvoa, Barros & Blanco 2013). Successful integration of these functions should, in turn, enhance the flow of output and maintain an effective relationship between suppliers and customers and hence ensure their expectations are being met (Hung et al. 2010). As customer needs differ, so too does the diversity of supply chains, which can be adapted to a business’s specific needs.
One of the key roles of KPIs is to give substance to the high level aspirations outlined in the organization’s strategic documents and in doing so to make them both more tangible to those who must make progress towards them and those whose job it is to measure this progress. Additionally, businesses can utilize KPIs to establish and monitor progress toward a variety of goals, including lean manufacturing objectives, minority business enterprise and diversity spending, environmental initiatives, cost avoidance programs and low-cost country sourcing targets. Any business can better manage supplier performance with the help of KPIs robust capabilities, which include: automated entry and approval functions; on-demand real-time scorecard measures and rework on procured inventory
It also explains the importance of managing the supply chain in the business perspective. v Before proceeding further its important for us to know what supply chain is and what supply chain is about? Supply chain: In an industrialized or non-industrialized society goods are physically moved from production area to the service area. This exchange takes place when there is discrepancy between the amount and type of goods available and the goods needed. If there is surplus amount of goods in organisation that someone else needs, becomes a basis for exchange.
Introduction Supply chain management (SCM) is the positive streamlining of a business' supply-side activities to maximize consumer value and earn competitive advantage in the marketplace. Supply Chain Management act an effort by suppliers to grow and apply supply chains that are as effective and economical as acceptable. Supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings. Supply Chain Management try to control or link the production, shipment and distribution of a product. By managing the supply chain, companies are able to cut surplus costs and sent products to the consumer faster.
Logistics Interfaces with Marketing. Logistics is often referred to as the other half of marketing and plays an important role through the physical movement and storage of goods in selling a product. Interfaces with marketing are discussed in terms of price, product, promotion, and place elements of the marketing mix. Logistics pricing decisions concern carrier pricing, matching discount schedules to transportation rates, and volume relationships affecting the ability to move and store products. 3.
Supply chain management and customer relationship management are some of the many systems used by firms to accomplish the aforementioned functions. Before comparing Supply Chain Management and customer relationship management systems to Tradition Systems, a brief description of Supply chain management and the activities it involves is fully warranted. This brief easy attempts to compare and contract SCM and CRM systems to traditional management systems in terms of approaches , efficiency, cost saving, and firm profitability. Jiambalvo (2010) describes supply chain management as,” the organization of activities between a company and its suppliers in an effort to provide for the profitable development, production, and delivery of goods to customers.” (P, 15). Sunil & Peter further describe ( ) supply chain as, “consisting of all parties involved, directly or indirectly, in fulfilling a customer request.
 The main goal of having a functional supply chain is to keep the customer happy. Supply Chains are used in services and manufacturing. Services that incorporate a supply chain are used for providing and driving the need to support the elements of the services it delivers.  Manufacturing utilizes a supply chain in order to control inventory and production flow.  The performance of a supply chain is measured through the following ways: • Inventory Measures • Financial Measures o Total Revenue o Costs of goods Sold o Operating Expenses o Cash Flow o Working Capital o Inventory Placement o Mass Customization Inventory measurement is a method that controls the inventory count of units, volume, and weight.
inventory, transportation and facilities. The inventory consists of the raw materials that the firm procures for the processes and production of products. It is also about the work in progress and the stock of finished goods in the supply chain (Handfield and Nichols, 1999). The transportation part comprises of the means of moving the inventory and the facilitation of the movement of the same from one point to another. The facilities include the part and place involved in accurate storage of inventory, manufacturing process and assembly.
It encompasses all of those integrated activities that bring product to market and create satisfied customers. Therefore, a good management of the