Supply Chain Management (SCM) has become such an integral and essential part of every day business that entire fields of major are dedicated solely to it. SCM, pioneered by Wal-Mart, has grown in the last few years to include not only the management of the physical aspects of SCM, but also the electronic components, such as the Internet and many SCM tools, for instance SAP. Inventory being held across the retail supply chain at any one time amounts to $1 trillion, according to a report by Benchmarking Partners, based on U.S. Dept. of Commerce data. The Cambridge, Mass.-based consulting firm estimates 15 percent to 20 percent of those inventories ($150 billion to $200 billion worldwide; $40 billion to $50 billion in the United States) could be eliminated through improved planning, forecasting and replenishment. This is a major motivation for firms everywhere to reduce costs by applying supply chain management tools.
What is Supply Chain Management?
Traditionally, the phrase Supply Chain Management meant assembly lines, warehouses, truckers and time sheets. Earlier, manufacturers had the luxury of taking years to develop, market and sell their products. Back then, there were few variations in packaging and in the products themselves. In only a few years, the very fundamentals of manufacturing in virtually every industry have changed. Changes have taken place in the relationships between producers of primary products, manufacturers and retailers. Companies are looking at how to provide greater flexibility in moving parts globally. In a quest for greater efficiency and lower costs, there's been growing importance given to managing the supply chain effectively for the benefit of al...
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...older wealth is rising, making investors happy, whilst giving the technological industry (computers) a boost.
Bibliography / References / Works Cited:
McGraw-Hill, Irwin, Management Information Systems, Sixth Edition O’Brien ISBN: 0-
Supply Chain Management Research Center
Is Supply Chain Management What I Need?
What is SCM?
SCM: What does it mean to Industry now?
Integrated Supply Chain Management
How Wal-Mart Keeps Getting it Right
SAP – Deutschland
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