As the name indicates, supply chain management or SCM is defined as the management or running of supply chain. A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Thus, (SCM) is the method of coordinating and integrating the flow of materials, information, and finances as they move in a process from supplier (vendor) to manufacturer to wholesaler to retailer to consumer.

payment schedules. The finances flow . The information flow . and consignment and title ownership arrangements. o o .o The product flow .involves transmitting orders and updating the status of delivery. as well as any customer returns or service needs.includes the movement of goods from a supplier to a customer.consists of credit terms.

location. and planning process definition. including quantity. 2. and size of warehousing.1. location. and contracting. including the number. scheduling. ‡ Payments ‡ Focus on customer demand Contd« . and facilities. ‡ Inventory decisions. ‡ Transportation strategy. distribution centers. routes. and quality of inventory. Tactical Function ‡ Sourcing contracts and other purchasing decisions. ‡ Production decisions. including frequency. Strategic Function ‡ Where-to-make and what-to-make-or-buy decisions ‡ Strategic network optimization. including contracting.

3. distribution centers. accounting for all constraints in the supply chain. ‡ Order promising. ‡ Production operations. including all fulfillment activities. and other customers. including all suppliers. Operational Function ‡ Daily production and distribution planning. ‡ Outbound operations. including transportation from suppliers and receiving inventory. ‡ Inbound operations. . including the consumption of materials and flow of finished goods. including all nodes in the supply chain. manufacturing facilities. ‡ Production scheduling for each manufacturing facility in the supply chain (minute by minute). warehousing and transportation to customers.

1. Execution applications: It tracks the physical status of goods. the management of materials. Planning applications: It uses advanced algorithms to determine the best way to fill an order. 2. Note: [The above mentioned softwares use Web-based application service providers (ASP) ] . and financial information involving all parties.

.` To reduce inventory (stock) with the assumption that products are available when needed.

After going through the above presented slides. Can we now define SCM in a simpler form? .

execution. building a competitive infrastructure. planning. synchronizing supply with demand.Thus. SCM is defined as the "design. leveraging worldwide logistics. control." . and measuring performance globally. and monitoring of supply chain activities with the objective of creating net value.

. IBMR.THANK YOU Presented on Nov 19th . 2009 by . MBA-MSU (2009-11). RAJSEKHAR MUKHERJEE.

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