Supply Chain Management

Topics: Supply chain management, Management, Supply chain Pages: 4 (1372 words) Published: April 3, 2013
Supply Chain Management (SCM), an important integral part of operational management. Its role is to meet the conditions of a certain level of customer service, in order to make the whole supply chain system cost lowest and the suppliers and help along manufacturers, warehouses, distribution centers effectively organized together, to carry out the method of product manufacturing, transport, distribution and sales management. SCM includes five basic elements, there are planning, sourcing, making, delivering, returning. Planning, this is a strategic part of the SCM. You need a strategy to manage all the resources in order to meet customer demand for your product. A good planning is to establish a series of methods to monitor the supply chain, to enable that it is effective, customer delivery of high-quality and high-value products or services in low-cost. Sourcing, choosing the supplier who can provide you with the goods and services, to establish a set of pricing, delivery and payment processes and create methods to monitor and improve the management with supplier, to manage processes of the combination for goods and services, including delivery, verification of invoices, forwarding the goods to the manufacturing sector and approved payments to suppliers. Making, arrangements for the production, testing, packaging and ready to delivery activities, is the largest part of the supply chain measurement content, including the level of quality, product yield and workers productivity measurement. Delivering, a lot of "insiders" called "logistics", adjust the user's order receipt, establish warehouse network, pick up and delivery to customers, receive payments to suppliers. Returning, This is the processing part of the problem in the supply chain. Receiving returns from the customer for the defective and excess products.

Why SCM.
There are significant differences in the method of management, cargo flow, costs, information flow, risk, planning and...
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