Supply chain management
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Supply chain management managing complex and dynamic supply and demand networks. (cf. Wieland/Wallenburg, 2011) Supply chain management (SCM) is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. Another definition is provided by the APICS Dictionary when it defines SCM 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." Contents [hide] * 1 Origin of the term and definitions * 2 Problems addressed * 3 Activities/functions * 3.1 Strategic level * 3.2 Tactical level * 3.3 Operational level * 4 Importance * 5 Historical developments * 5.1 Creation era * 5.2 Integration era * 5.3 Globalization era * 5.4 Specialization era (phase I): outsourced manufacturing and distribution * 5.5 Specialization era (phase II): supply chain management as a service * 5.6 Supply chain management 2.0 (SCM 2.0) * 6 Business process integration * 7 Theories * 8 Supply chain centroids * 9 Tax efficient supply chain management * 10 Supply chain sustainability * 11 Components * 11.1 Management components * 11.2 Reverse supply chain * 12 Systems and value * 13 Global applications * 14 Certification * 15 See also * 16 References * 17 Notes * 18 External links| -------------------------------------------------
Origin of the term and definitions
The term "supply chain management" entered the public domain when Keith Oliver, a consultant at Booz Allen Hamilton, used it in an interview for the Financial Times in 1982. The term was slow to take hold and the lexicon was slow to change. It gained currency in the mid-1990s, when a flurry of articles and books came out on the subject. In the late 1990s it rose to prominence as a management buzzword, and operations managers began to use it in their titles with increasing regularity. Common and accepted definitions of supply chain management are: * Managing upstream and down stream value added flow of materials, final goods and related information among suppliers; company; resellers; final consumers is supply chain management. * Supply chain management is the systematic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole (Mentzer et al., 2001). * A customer focused definition is given by Hines (2004:p76) "Supply chain strategies require a total systems view of the linkages in the chain that work together efficiently to create customer satisfaction at the end point of delivery to the consumer. As a consequence costs must be lowered throughout the chain by driving out unnecessary costs and focusing attention on adding value. Throughput efficiency must be increased, bottlenecks removed and performance measurement must focus on total systems efficiency and equitable reward...