[SUPPLY CHAIN MANAGEMENT-WHAT IT IS & HOW IT WORKS]
Anyway that‘s more of a science than an art and
often it involves a lot of mathematics. In realitymost of the process is reactionary i.e. first a product is modeled and tested by the marketingdepartment and then the OR people are told to take care of the dirty work. How do they respond?Well their life is miserable and they use lots and lots of statistical data to conceive the idealsupply chain. There is also some trial and error. Finally with the aid of software and experience away is sought whereby you deliver the product to the customer through different processes alongmany alternative routes (online, brick and mortar shop, etc) while trying to minimize cost andmaintaining quality (read standards). And this is exactly where we started from. Now
do some boring stuff and try to discover SCM as it is explained across differentcontemporary texts.
The management of upstream and downstream relationships with suppliers and customers in order to deliver superior customer value at less cost to the supply chain as a whole.
Well…there are many definitions available and the above quoted example is just one of many.
So one can easily find different examples across different textbooks and try to compare them and
blah, blah, blah, yak, yak, yak….
What‘s important here is to understand the concept of SCM as a whole. To specialize in of the
domains of SCM is the province of nerdy PhD scholars or researchers.In simple words the goal or mission of supply chain management can be defined as to
―Increasethroughput while simultaneously reducing both inventory and operating expense.‖
A Little History
The concept of SCM is very old; perhaps as old as life itself. It goes back to the great wars of ages gone by, the building of great cities, even earlier when man started hunting and make fire,or even earlier when different species were evolving.
I know, I know, too abstruse……
!Ok, so the term was coined in a paper published in 1975.
Banbury (1975) used „supply chain‟ as a term of passing on electricity towards the ultimate
It was not until the 1980‟s, however, that the term „supply chain management‟ came
into context. Oliver and Webber (1982) discussed the potential benefits of integrating internal business functions of purchasing, manufacturing, sales and distribution into one cohesive
framework. In the early 1990‟s, supply chain management evolved dramatically with the
increasing importance of the relationship with other suppliers (Harland, 1996).
Then came TQM, lean and JIT. Nowadays there is a strong emphasis on Green Supply ChainManagement and more specifically on Reverse Logistics and Waste Management.