Supply Chain Management Essay

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1. Introduction Supply Chain Management (SCM) is the management and control of the flow of goods. It includes the movement and the storage of raw materials, work-in-process inventory, and also finished goods from the origin to the consumption. SCM has been defined as “design, planning, execution, control, and also monitoring of supply chain activities with the goal of creating net value, building a competitive site, leveraging global logistics, combining supply with demand and measuring performance universally” 1. As part of my task, I will discuss the topics of logistics, communication within the supply chain, such as, information systems and Electronic Data Interchange (EDI), relationships with partners, the environment of SCM and the marketing channels and process. My objectives are to inform you how the process of SCM works, how it enables profitable growth and enhances customer satisfaction. SCM creates all positive outputs, according to the Journal of Operations and Supply Chain Management, results showed positive effects of SCM on all performance dimensions, backed-up by the resource-based and relational views of strategy 2. Logistics Inbound logistics refers to the transport, storage and delivery of goods coming into a business. Outbound logistics refers to the same for goods which are going out of a business. Inbound and outbound logistics are combined within the area of supply-chain management, as managers seek to maximise the efficiency of distribution networks while reducing transport and storage costs 3. Components of the logistics system: Transport- Air transport has advantages for low-volume, high-margin products, such as flowers, where rail and water suit higher-volume, low-margin products ... ... middle of paper ... ...• The plan is implemented. • Results are monitored. Conclusion From the above, it is clear that certain elements of Supply Chain Management are very effective and evidently essential. In my opinion SCM is a new philosophy as it is necessary for companies. Supply Chain Management becomes a tool which helps accomplish corporate strategic Goals: o Reducing the working capital, o Taking some assets off the balance sheet, o Initiating cash-to-cash cycles, o Increasing inventory turns, and more. However, there is an argument that it could be a passing fad also, in other words it is an unnecessary process. This is argued because Supply Chain Management has only been introduced in the last thirty years into business organisations, therefore people argue that it wasn’t necessary to have SCM to make the business a success in recent times so why should it be now?
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