Tuesday, 25 April 2017

What are the key concepts of Supply Chain Management?


There are a few underlying concepts of supply chain management that have remained the same for hundreds of years.  The term supply chain management was formed in the eighties and became a widespread turn in the nineties. Before then, the term logistics was used, along with operations management.

There are numerous definitions of supply chain management.
  • The supply chain is made from all the stages that are directly and indirectly involved in meeting the request of a customer. It includes manufacturers and suppliers along with transporters, retailers, customers and warehouses.
  • The supply chain is a network that is responsible for performing the functions of procuring materials, the transformation of the materials into intermediate and finished products and distributing them.
  • A supply chain aligns firms together to bring products to the market.

Supply chain management can be defined as:
  • The strategic coordination of traditional internal business functions and over other businesses in order to improve the supply chain.
  • The coordination of production, inventory, location and transportation among a group of businesses in a supply chain to be responsive and efficient for the served market.

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