Literature Review Supply Chain Management Essay

In today’s competitive business world, the best companies have discovered a powerful new source which encompasses on all the integrated activities that bring the product to the market and create satisfied customers and is called “Supply-Chain Management”.

Success for many organizations depends on the firm’s ability to balance product and process changes while exceeding customer expectations for improved cost delivery and quality. In lieu of these issues firms have started to implement principles of supply chain management. Supply chain management mainly involves managing the flow of incoming materials, manufacturing operations, and downstream distribution has to be in alignment that is responsive to change in customer demands eliminating a surplus of inventory.

A Customized Textbook, Supply Chain Management SCHM2301, ISBN9781308037400 Copies are on reserve in the library

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Supply Chain Management (SCM) has been defined by Supply Chain Management Institute to be “the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders”(SCM-Institute, 2016).

The Supply-Chain Council defines supply chain management as “[m]anaging supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer” (Wisner, Leong & Tan 2005).

This article is about supply chain management (SCM). Its importance in the field of operation management. Supply chain management was discussed from the past three decades. This article tells about how supply chain management developed and how it will proceed in the future. The term “supply chain management” first appeared in the practitioner literature in 1982, which said that SCM is a way to manage resources and assets in a better way.

Supply Chain encompasses three things universally; supply, manufacturing, and distribution. It is a practice that has many layers and is very intrinsic but if a company can master an efficient supply chain they will have a huge one up on any competitors in their path. This is arguable one of the most important parts of a company it can be measured in many ways, from operational efficiency, profit (improving bottom line), customer satisfaction and many other ways. “In light of the many opportunities and risks, shareholders and leadership understand the utmost importance of supply chain excellence. In today’s world, the supply chain is central to business models and represents the ultimate source of competitive advantage” (Lehmacer). Supply chain doesn’t always just focus on internal problems of a business but it is so wide reaching that it also; “touches major issues, including the rapid growth of multinational corporations and strategic partnerships; global expansion and sourcing; fluctuating gas prices and environmental concerns, each of these issues dramatically affects corporate strategy and bottom line. Because of these emerging trends, supply chain management is the most critical business discipline in the world today.” (Bisk) Available positions in this field include: supply chain manager, director of product marketing, SR product manager, global sourcing manager, VP supply chain software products, senior buyer, planner, materials manager… etc. With this industry

Supply chain management plays a very crucial role in the success of any organization and how it can cater to a customer’s need and provide the maximum satisfaction. Supply chain management is essentially managing the flow of goods/services of an organization. It involves raw materials storage, transportation, inventory management, distribution and procurement.

What is Supply Chain Management (SCM)? Supply Chain Management is the synchronization of a firm’s processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand. To provide the highest degree of customer satisfaction at the lowest possible cost is the flow in supply chain in management of material and information. The commitment of supply chain partners is important and requires to work together to coordinate order generation, order taking, and order fulfillment in Supply Chain Management. To maximize customer value and gain a competitive advantage in the marketplace is the active streamlining of a business’ supply-side activities in Supply Chain Management. Development and implementation supply chains by suppliers is the effort represents Supply Chain Management that are as efficient and economical as possible. To product and development, the information systems are needed to direct these undertakings which is cover everything from production by supply chains.

From initial creation to final sale, Supply Chain Management oversees each touch point of a company’s product or service. Through efficiencies or lose value through increased expenses, proper SCM can increase revenues, decrease costs and impact a company’s bottom line with so many places along the supply chain. So SCM can help company to manage and revise its supply chain efficiently to stay ahead of the changing trends and continue to add value to its bottom line. Besides that, technology portion has invested in supply chain which use to synthesize relevant data and to forecast customer purchase behavior which is a forward-looking implementation in SCM to meet the expected demand. It also reduces the cost of warehousing and transportation which excess

The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.

As e-commerce continues to grow globally, customers have more options to order products than ever before. Shipping options need to keep up to date with the demands of the marketplace, which requires companies to adapt their supply chains to meet customers’ needs and preferences. Whether it be a small parcel or a bulk product, shipping in a quick and efficient manner is key to a business’ success. It is understood that supply chain management systems aid companies to determine the optimal ways to ship while reducing costs to the lowest possible

Supply chain management (SCM) is the supervision of materials, information, and finances as they move in a process from supplier to manufacturer to retailer to the cessation consumer. There are three crucial flows of the supply chain: The product flow, the information flow and the finances flow. SCM involves coordinating and integrating these flows both inside and between

The leading companies around the world utilize a new method of business coordination that gives them a competitive edge in the market. Supply chain management gives companies the power of that competitive edge. Supply chain management (SCM) is defined as including all the activities that must take place to the right product into the right consumer’s hands in the right quantity and at the right time. This can vary from raw material extraction to consumer purchase. SCM is able to process and coordinate information from the supply chain, creating a smooth network. It