Supply Chain Management Overview

The effective and efficient development of a vertically integrated supply chain is heavily reliant on robust supply chain management practices. In essence, supply chain management entails the oversight of a complex network of interconnected businesses working collaboratively to deliver the necessary products and services to end customers. This comprehensive approach involves managing the entire lifecycle of goods, from the movement and storage of raw materials to work-in-process inventory and the delivery of finished goods at the point of consumption.

Harrison and Van Hoek's perspective on supply chain management emphasizes the synchronization of both upstream and downstream capabilities among various supply chain partners. The ultimate goal is to provide superior value to the end customer while concurrently reducing costs across the entire supply chain. Effectively managing a supply chain entails nurturing relationships link by link, and organizations excelling in these interconnections are more likely to achieve success in today's dynamic business environment.

A critical prerequisite for successful supply chain management is the seamless integration of information flows, material movements, and all underlying business processes within the supply chain network. This integration has become increasingly crucial in the contemporary business landscape, where the rapid advancement of technology and the advent of Industry 4.0 have transformed traditional supply chain practices. Real-time data analytics, artificial intelligence, and the Internet of Things (IoT) play pivotal roles in optimizing supply chain operations, enhancing visibility, and mitigating risks.

Speaking of risks, supply chain risk management has gained prominence as events that disrupt material movement can have profound consequences on the planned flow of both materials and finances from initial suppliers to the end consumer. In the face of global uncertainties, geopolitical tensions, and unforeseen disruptions like the recent pandemic, businesses are compelled to adopt agile and resilient supply chain strategies to navigate challenges and ensure uninterrupted operations. The ability to proactively address and mitigate risks has become a key determinant of supply chain success in today's ever-evolving business landscape.
Supply Chain Management Overview

History of supply chain management

Before the 1950s, logistics was thought of in military terms. It had to do with procurement, maintenance, and transportation of military facilities, materials, and personnel.

The scope of physical distribution was expanded to include physical supply and was called business logistics. It emerged in the 1960s and 1970s.

The importance of logistics increased considerably, when physical distribution management in manufacturing firms was recognized as a separate organizational function . The SCM concept was coined in the early 1980s by consultants in logistics.

The first use of the term “supply chain management” is commonly related to the article “Supply Chain Management: Logistics Catches up with Strategy” by Oliver and Weber (1982).

The term “supply chain management” then came into widespread use in the 1990s. In practice, supply chain management became important in the 1990s in retail networks, the automotive industry, electronics, and textiles.

The origins of the technique of supply chain management are thought to lie in the shipyards of Japan and were first used in the early 1950s. The technique was later used in the car manufacturing industry and in particular was pioneered, again in Japan, by Toyota.

Physical distribution begins to emerge as an area of study and practice, which is the coordination of more than one activity associated with physically supplying product to the marketplace.

The development of supply chain management was driven in the 1990s by three main trends. These are: customer orientation, markets globalization, and establishing an information society.
History of supply chain management

Productivity in supply chain

The key effective to supply chain management is the process of moving goods from the customer order through the raw materials stage, supply, production and distribution of products to the customer in good quality and less cost having customer almost satisfaction.

Supply chain management affects manufacturing companies in a variety of ways, including the availability of inputs needed for production processes, costs and profitability of manufactured items, company infrastructure and ways in which companies interact with their suppliers and customers.

The objective of supply chain management is efficiency improvements of the product delivery process from raw material suppliers to the end customer in accordance with. The primary purpose for the efficient Supply chain is to fulfil demand at the lowest possible cost. The objective of supply chain management is efficiency improvements of the product delivery process from raw material suppliers to the end customer.

Without the wherewithal to achieve outstanding productivity and efficiency as well as cutting costs, it is difficult for warehouse and distribution operations to add value to companies and help them stand out in their supply chain networks. In addition, logistics workforces often lack the tools to perform at optimal effectiveness, which can lead to higher operational margins.

Optimization of utilization of materials becomes critical task because lot of capital is consumed in terms of materials. Therefore, company is looking for new techniques to reduce the cost and increase the productivity Research showed that in global competitive environment industry is looking for new methods and new techniques to increase their efficiency.

Warehousing management in supply chain attributes for general sales growth by potential improvements in productivity, order accuracy, reduced space requirements, increased volume capacity, control of inventory and increased customer service.
Productivity in supply chain

Supply chain management

Supply chain management has emerged as one of the most powerful business improvement tools available nowadays.

Suppliers, manufacturers, distributors, retailers and a host of service organizations have discovered that they must either transform their operations and tactics or be beaten by competitors with more innovative and aggressive supply networks.

What is supply chain management? Supply chain management is the coordination of production, inventory, location, and transportation among the participants in a supply chain to achieve the best mix responsiveness and efficiency for the market being served.

The focus of supply chain management is on co-operation and trust and their recognition that properly managed.
Supply chain management