Supply Chain Management

Supply Chain Management
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Croods Consolidates

Croods Consolidates is a global information technology solutions company offering progressive end-to-end software development, mobile application, enterprise portal, web application, ecommerce development, technical support, enterprise mobility, testing, data & analytic consulting solutions by combining our business domain experience.
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What is the Supply Chain Management (SCM)

Within the organisation, the supply chain refers to a wide range of functional areas. These

include Supply Chain Management-related activities such as inbound and outbound

transportation, warehousing, and inventory control. Sourcing, procurement, and supply

management fall under the supply-chain umbrella, too. Forecasting, production planning

and scheduling, order processing, and customer service all are part of the process as well.

Importantly, it also embodies the information systems so necessary to monitor all of these

activities.

What is the importance of Supply Chain Management

In the ancient Greek fable about the tortoise and the hare, the speedy and overconfident

rabbit fell asleep on the job, while the “slow and steady” turtle won the race. That may

have been true in Aesop’s time, but in today’s demanding business environment, “slow

and steady” won’t get you out of the starting gate, let alone win any races. Managers these

days recognise that getting products to customers faster than the competition will improve

a company’s competitive position. To remain competitive, companies must seek new

solutions to important Supply Chain Management issues such as modal analysis, supply

chain management, load planning, route planning and distribution network design.

Companies must face corporate challenges that impact Supply Chain Management such

as reengineering globalisation and outsourcing.

Why is it so important for companies to get products to their customers quickly? Faster

product availability is key to increasing sales, says R. Michael Donovan of Natick, Mass.,

a management consultant specialising in manufacturing and information systems.

“There’s a substantial profit advantage for the extra time that you are in the market and

your competitor is not,” he says. “If you can be there first, you are likely to get more

orders and more market share.” The ability to deliver a product faster also can make or

break a sale. “If two alternative [products] appear to be equal and one is immediately

available and the other will be available in a week, which would you choose? Clearly,

“Supply Chain Management has an important role to play in moving goods more quickly

to their destination. “

 

Supply Chain Management Today

If we take the view that Supply Chain Management is what Supply Chain Management

people do, then in 1997 Supply Chain Management has a firm hand on all aspects of

physical distribution and materials management. Seventy-five percent or more of

respondents included the following activities as part of their company’s Supply Chain

Management department functions:

  • Inventory management
  • Transportation service procurement
  • Materials handling
  • Inbound transportation
  • Transportation operations management
  • Warehousing management

Moreover, the Supply Chain Management department is expected to increase its range of

responsibilities, most often in line with the thinking that sees the order fulfilment process

as one co-ordinated set of activities. Thus the functions most often cited as planning to

formally include in the Supply Chain Management department are:

  • Customer service performance monitoring
  • Order processing/customer service
  • Supply Chain Management budget forecasting

On the other hand, there are certain functions which some of us might feel logically

belong to Supply Chain Management which companies feel are the proper domain of

other departments. Most difficult to bring under the umbrella of Supply Chain

Management are:

  • Third party invoice payment/audit
  • Sales forecasting
  • Master production planning

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Supply Chain Management

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