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SUPPLY CHAIN Meaning of supply chain:The supply chain is a network of organization and business processes for procuring raw materials, transforming these materials into intermediate and finished product, and distributing the finished products to customers. It links suppliers, manufacturing plants, distribution centers, retail outlets, and customers to supply goods and services from source through consumption.
SUPPLY CHAIN
SUPPLIER
MANUFACTURER
DISTRIBUTOR
RETAILER
CUSTOMER
The wide arrows show the flow of material between supply chain members, and the other arrows show the flow of information.
3 MAKE Schedule production. Evaluate quality and performance. Manage work force. 5 RETURN Authorize returns. Schedule returns. Receive returns. Issue return credit.
Schedule deliveries.
Manage inventory. 4 DELIVER Select carriers. Route shipments. Manage warehouses. Invoice customers.
SUPPLY CHAIN MANAGEMENT APPLICATIONS: The objective of supply chain management systems is information visibility-open and rapid communication and information sharing between members of supply chain. Supply chain management enable the firm to generate demand forecasts for a product and to develop sourcing and manufacturing plans for that product. Supply chain management helps in the flow of products through distribution centers and warehouses to ensure that products are delivered to the right location in the most efficient way.
BUSINESS VALUE OF SUPPLY CHAIN MANAGEMENT SYSTEMS:1 IMPROVED CUSTOMER SERVICE AND RESPONSIVENESS:- supply chain management improves delivery service and customer gets right product at right time and at a right place. 2 COST REDUCTION:- supply chain management helps companies contain , and often reduce, some or all of costs associated with moving a product through the supply chain. 3 CASH UTILIZATION:- companies leading in supply chain efficiency have cash available two or three months faster than companies that do not have this capability.