Wednesday, 26 April 2017

What are the five areas of supply chain management practice?

The supply chain is a number of activities meeting the requests of customers. It uses a systems approach to organise and coordinate the flow of services or products to the end customer.  There are five areas where decisions need to be made:
  • Production – What are the products that are in demand? How much are required, who should produce them and by what time?
  • Inventory – What inventory needs to be stocked at each stage in the supply chain?
  • Location – Where should the facilities be located and do they need to be built? How will the flow of products be formed and used?
  • Transportation – How will the inventory be moved between the locations?
  • Information – What data will be collected and how much information needs to be shared throughout the chain?


Decisions that are made in these 5 key areas will define how effective the supply chain will be. 

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