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supply chain management

supply chain management

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Published by Syed Rehan
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Published by: Syed Rehan on Nov 19, 2010
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 __________________________________________________ Mohammad Ali Jinnah University ___________________________________________ 
SUPPLY CHAIN MANAGEMENT
What is Supply chain management?
A supply chain is the group of components (suppliers, distribution points,transportation providers) necessary to bring your product from its raw material stateto the end user.
Supply chain management is the term used for controlling and regulating your supplychain.A simple supply chain model consists of four components
: 
»
 Supplier supplies the raw materials
»
 
Manufacturer  produces the product
»
 Warehouse or Distribution Center stores and ships the product
»
 End User receives the product
2
 
 __________________________________________________ Mohammad Ali Jinnah University ___________________________________________ 
SUPPLY CHAIN MANAGEMENT
DDC replaces supply chain consultants for the Warehouse / Distribution center piece of your supply chain puzzle. We will talk to you about your needs, assess your currentwarehousing and distribution needs, and make recommendations on how you can makesimple adjustments to save you time and money while increasing your service levels andefficiency. We even offer transition assistance to help you notify suppliers, vendors, and
clients.
Supply chain management (SCM) is the oversight of materials, information, and financesas they move in a process from supplier to manufacturer to wholesaler to retailer toconsumer. Supply chain management involves
coordinating
and
integrating
theseflows both within and among companies. It is said that the ultimate goal of any effectivesupply chain management system is to reduce inventory (with the assumption thatproducts are available when needed).As a solution for successful supply chain management, sophisticated software systemswith Web interfaces are competing with Web-based application service providers (ASP)who promise to provide part or all of the SCM service for companies who rent their service
.
Effective supply chain management
is an intricate loop, one that begins with the customer and endswith the customer. In earlier days, the phrase Supply Chain Management
m
eant assembly lines,warehouses, truckers and time sheets. Traditionally, marketing, distribution, planning, manufacturing,and purchasing organizations operated independently along the supply chain. These organizationsfunctioned with their own objectives which were often conflicting. The imbalance in the entire practicedemanded for a mechanism which integrates different functions together. Supply chain management is astrategy through which such integration can be achieved.
History
The 1980s the termSupply Chain Management(SCM) was developed, to express the need to integratethe key business processes, from end user through original suppliers. Original suppliers being those that3
 
 __________________________________________________ Mohammad Ali Jinnah University ___________________________________________ 
SUPPLY CHAIN MANAGEMENT
 provide products, services and information that add value for customers and other stakeholders. The basic idea behind the SCM is that companies and corporations involve themselves in a supply chain byexchanging information regarding market fluctuations, production capabilities.Traditionallogisticsoptimization to maximize the efficiency of the distribution side.Starting in the 1990s several companies choose to outsource their supply chain management by partnering with a 3PL,Third-party logistics provider 
GOAL OF SUPPLY CHAIN MANAGEMENT
GOAL
 To reduce organization in efficiencies The process of coordinating activities among
SUPPLIER
PRODUCTION FACILITIES
DISTRIBUTION CENTRES AND
CUSTOMERSSo that you can make and distribute the Right product at the Right time to the Rightlocation at a
Minimum cost
While maintaining a Desired level of service.
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