Reetika Singh

Roll No:34
TYBMS

Supply chain management

Introduction
Supply chain management (SCM) is the management of the flow of goods. It includes the movement and storage of raw materials work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node business are involved in the provision of products and services required by end customers in a Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.

Objectives of SCM
The best supply-chain management programs display certain common characteristics. For one, they focus intensely on actual customer demand. Instead of forcing into the market product that may or may not sell quickly (and thereby inviting high warehousing costs), they react to actual customer demand. And by doing so, these supply-chain leaders minimise the flow of raw materials, finished product, and packaging materials at every point in the pipeline.

Presentation of SCM
Creation era Integration era Globalization era Procurement process Manufacturing flow management process

Analysis & Intepretation Data

Planning Sourcing Making Delivering Handling returns

SCM Today
Supply Chain Management has a firm hand on all aspects of physical distribution and materials management. Seventy-five percent or more of respondents included the following activities as part of their company's Supply Chain Management department functions:
Inventory management Transportation service procurement Materials handling Inbound transportation Transportation operations management Warehousing management

SCM Tomorrow
The future for Supply Chain Management looks very bright. This year, as well as last year, two major trends are benefiting Supply Chain Management operations. These are Customer service focus Information technology Successful organisations must be excellent in both of these areas, so the importance of Supply Chain Management and the tools available to do the job right will continue to expand.

Benefits
Supply chain management's ability to affect profitability and shareholder value should come as no surprise. They include: Profitable growth Working capital reduction

Cost minimization

Reverse Supply Chain

Reverse logistics is the process of managing the return of goods. It is also referred to as "aftermarket customer services". Any time money is taken from a company's warranty reserve or service logistics budget, one can speak of a reverse logistics operation.

Application
Where the technique has been applied?
Japanese companies have been forerunners to implement quality check procedures directly into the manufacturing and assembly process. The objective was to finish each single process step without defects thereby ensuring that following processes are not disturbed.

Supply Chain Process

As we know supply chain is the back bone of any industry. A supply chain consist of all parties involved directly or indirectly in fulfilling a customer request. The supply chain management includes not only the manufacturer or supplier part but also transporter, warehouse, and customer part. In retail especially supply chain begins with the customer and his or her need for the product. In retail supply chain involved in receiving and filling a customer request.

Role of marketing in SCM

The concept of supply chain management originated in the logistics literature and logistics has continued to have a significant impact on the concept. The strong influence of logistics in the process of conceptualizing SCM seems to be caused by the weight given to inventory reduction and stock availability issues as the objectives of the implementation of SCM. The purpose of this topic however is to highlight the role of marketing in the implementation of SCM. The approach taken is to review several important concept in the discipline of marketing-the marketing concept, a market orientation, and relationship marketing, as well as the American marketing association definition of marketing to explore the key linkages between marketing management and supply chain management.

Sales function in SCM

The role of the contemporary salesperson is changing dramatically and in many situation the old models of selling are simply outdated, ineffective, and counterproductive to supply chain management goals and objectives. Although most sales organization focus on prepurchase activities supply chain partners focus on managing relationship and conducting postpurchase activities to enhance supply chain performance. The sales force is well positioned to implement, facilitate, and coordinate and many supply chain management activities. In short the supply chain sales forces should be involved with any supply chain activities that goes beyond organizational boundaries.

Able to communicate effectively and work together on supply chain management.

Role of Logistics in SCM

Capitalizing on these opportunities requires the ability to

build alliances within and between firms, a commitment to planning and integrating information flows, and the ability to measure performance to guide the improved design of the logistics system and supply chain processes. The importance of the supply chain managers ability to leverage logistics competencies will increase in the future.

Information System
Information sharing is important when integrating the supply chain. At the ultimate level of integration all members links in the supply chain are continuosly supplied with information in real time. Information is such a vital part of supply that the Council of Logistics Management incorporates information in its definition of logistics as the part of the supply chain process that plans, implements and control the efficient flow and storage of goods services and related information from the point of origin to the point of consumption.

Thank you