MBA(FT) Semester III
School of Management Studies
Abstract: Modern day business is beset with changing governance paradigms. The recent surge in business literature has veered the way corporations are getting flatter and flatter. A key concern of global manufactures today is reducing inventory and inventory driven costs across their supply and distribution networks. With todays emphasize on cutting costs and streamlining expenses, many companies are looking to improve their bottom lines with more effective supply chains. Unfortunately, many people involved with companies don't have a clear understanding of what a supply chain is or how it fits into the company’s overall strategy. An overview and tangible benefits of the existing IT tools that are widely deployed is also provided with focus on existing configurations considerations, available applications. The role of existing communication technologies in making IT an enabler of SCM is highlighted by addressing a range of different point and enterprise solutions in a variety of supply chain settings.
Key Words: Supply chain management, EDI, RFID
1 General Information
Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996).
The term was coined by Keith Oliver, a Booz Allen Hamilton executive in 1982. 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 (supply chain). Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies. More recently, the loosely coupled, self-organizing network of businesses that cooperates to provide product and service offerings has been called the Extended Enterprise.
Supply Chain Management
Supply chain management is a well-known term that has been highly publicized throughout the business community during the past decade. In its most generic sense, it is a term that refers to the flow of products and services from suppliers to manufacturers and retailers through to the ultimate destination – the consumer. It also refers to the flow of information backwards and forward through the supply chain between the consumer, retailers, manufacturers and suppliers, enabling the rapid replenishment of existing products or the development of new products to meet changing market demands. Supply chain management functions within a retail environment include the planning, execution, optimization and measurement of the following: sourcing/procurement, Collaborative Planning Forecasting and Replenishment (CPFR), demand forecasting (as it pertains to product quantities and time requirements), inventory replenishment, inbound and outbound transportation, store logistics and warehouse management. While each of these functions are processes unto themselves, they are all related and should, in effect, be integrated and considered holistically rather than in isolation. Further, supply chain management should be tightly integrated with merchandising, assortment planning, marketing (new product introduction), information technology, finance, and human resource management.
Supply Chain Management Operation
Supply chain execution is managing and coordinating the movement of...