UNDERSTANDING SUPPLY CHAIN & SUPPLY CHAIN STRATEGIES

INTRODUCTION TO SUPPLY CHAIN MANAGEMENT

Integrated and Cooperative Logistics

Supply chain management (SCM) is a necessity for the foundation of all societies. An

effective supply chain meets the needs of both producers and consumers and takes an integrated

approach towards management. If operations in multiple locations are cooperating and

communicating, this may make supply chains much more efficient. Logistics are also much

easier to observe and manage every part of an integrated supply chain in providing inventory and

procurement data that are backed by more than one entity.

Sourcing

The selection of suppliers and the management of supplier relationships. Sourcing and

procurement include negotiating prices, managing contracts, and ensuring quality and reliability.

Sourcing refers specifically to the process of identifying and selecting suppliers that are going to

provide the raw materials, the components, and any other inputs that are needed in production.

Effective sourcing involves identifying and also evaluating potential suppliers based on

criteria, these criteria could be quality, price, delivery, reliability, and any other factors that your

organization deems suitable to grade, measure, and evaluate suppliers or possible suppliers. This

also involves managing relationships with suppliers to ensure that they deliver high-quality

inputs in a timely and cost-effective manner.

Pricing
 The price that a business should or will charge for the goods and services it provides

along the supply chain is determined by pricing as a driver. Pricing affects consumer behavior,

which in turn affects supply chain efficiency and demand.