The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain.

The second idea is that while supply chains have existed for a long time, most organization have only paid attention to what was happening within their “four walls,” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products tot eh final customer. The result was disjointed and often ineffective supply chains.



The supply-chain encompasses every effort involved in producing and delivering a final product or service, form the supplier to the customer. Supply-chain management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer.

Definition. A supply chain is network of facilities and distribution options that performs the functions of procurements of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers. Supply chains exist in both serve and manufacturing organization, although eh complexity of the chain may vary greatly from industry to industry and firm to firm.

Supply chain management flows can be divided into three main flows:

(a)    The product flow
(b)    The information flow
(c)    The finances flow

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

There are tow main types of SCM software: planning applications and execution application. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties.

For more help in Supply Chain Management click the button below to submit your homework assignment