upply Chain Management is the systematic, strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain, for the purposes of imposing the long-term performance of the individual companies and the supply chain as a whole.
The definition of Supply Chain Management focuses on management of relationships as means of achieving better results for all members of the supply chain, including customers.
As a philosophy Supply Chain Management takes a systems approach to viewing the channel as a single entity, rather than as a set of fragmented parts, each performing its own function. There are three concepts in Supply ...view middle of the document...
Relationships that the business in focus does not deem to be critical or worth sacrificing management or monitoring resources on.
Relationships to other supply chains. A business can simultaneously be a supplier for several internally competing supply chains. These relationships are nor viewed as part of the relationships in the actual supply chain, but can, of course, have an important influence on the supply chain’s effectiveness and competitiveness.
Business Processes encompass the activities and flows of information that are connected with conducting materials, products and services through the supply chain and on to customers. Examples of some important business processes:
Order processing: This business process includes all of the activities that are tied in with expediting customers’ orders like placement of the order, receiving of the order, credit check, actual expedition of the order, the distribution and finally, the customer receiving the order and invoicing. The total time that passes between when the customer places their order until the customer receives the desired goods is often referred to as the order cycle.
Customer service: The term customer service includes a number of services before, during and after the actual sales transaction. Pre-services, for example, be advising, a flexible and easy ordering process and easily accessible product information. Service possibilities during the actual order process include a short order cycle, a strong level of warehouse service and electronically accessible delivery information (track and trace, proof of delivery). Service after the transaction may encompass various forms of customer support, including installation and assistance in the use of product, maintenance service, guarantees and return services in the event of error or deficiency.
Distribution: Distribution is specified as the process starting with the compilation of the products until their receipt by the customer. In some situations, distribution can also include replacement parts and return...