Supply Chain Management

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Supply chain management (SCM) can best be described as link or connection between suppliers, manufacturers, distributors, and customers. Supply chain doesn't only apply to materials being moved but also applies to information being moved. In practice, it's moving items from supplier to manufacture to distributer to retailer and finally reaching the customers. The Supply chain method of shipment or way of business hasn't all ways been around in fact it rose to prominence during the late stage of the 20th century. The introduction of trucks, airplanes, computers and the internet has changed everything. The Supply chain's goals are too reduce cost, save money and make forecast by determining the demand so that supply is matched. If the supply doesn't match the demand then there is waste and waste is synonymous with money lost. The importance of reducing cost through well planned strategies shouldn't be glossed over because lower costs and saved money leads to lower prices. A good Supply chain management leads to cost reduction and cost reduction leads to money saved and the money saved leads to lower prices for the consumer and lower prices are attract new customers. Before Wal-Mart, Kmart and Sears were the giants in their respective category. Wal-Mart’s electronic mindset to data collection can be attributed to the company's rise. In 1975 Wal-Mart brought in IBM 370/135 computer system to control inventory in store and delivery of items electronically (Waligum, 2007). Wal-Mart focused on the "hub and spoke" system where the hub was the distribution centers and the "spoke" was the local stores (Waligum, 2007). By putting multiple distribution centers in close proximities, Wal-Mart was able to reduce the distance of shipments an... ... middle of paper ... ...e and waste is synonymous with money lost. The importance of reducing cost through well planned strategies shouldn't be glossed over because lower costs and saved money leads to lower prices. Works Cited Michael, (2010). Bullwhips and Beer: Why Supply Chain Management is so Difficult. retrieved 2014 Feb,3, from http://www.decisioncraft.com/dmdirect/cpfr.htm Waligum, T (2007). 45 Years of Wal-Mart History: A Technology Time Line. retrieved 2014 Feb,3, from http://m.cio.com/article/147005/45_Years_of_Wal_Mart_History_A_Technology_Time_Line?mm_ref=https%3A%2F%2Fwww.google.com%2F Russel, R & Bernard w. Taylor (2006). Supply chain management- operations management- 5th edition. retrieved 2014 Feb,3, from http://is.ba.ttu.edu/faculty/ch10.ppt Song, H (2012). Tourism supply chain management. retrieved 2012 feb,03, from

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