Supply Chain Management

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SUPPLY CHAIN UPPLY HAIN MANAGEMENT ANAGEMENT

Report produced for the EC funded project INNOREGIO: dissemination of innovation and knowledge management techniques

Sotiris Zigiaris, MSc, BPR engineer
by

BPR HELLAS SA

J

A N U A R Y

2 0 0 0

SUPPLY CHAIN MANAGEMENT

1

Contents 1
1.1 1.1.1 1.1.2 1.1.3 1.1.4 1.2

Description
What is the Supply Chain Management (SCM) What is the importance of Supply Chain Management Supply Chain Management Today Supply Chain Management Tomorrow The Supply Chain Management Pipeline Objectives of the Supply Chain Management

1.3 Supply Chain principles/ Methodology and Solutions 1.3.1 Supply Chain Principles 1.3.2 Methodology of a Supply Chain Management project-solutions 1.4 Expected results/ benefits 1.4.1 Opportunity areas (examples) 1.4.2 There for the Taking 1.5 Characteristics of firms/ organisations and service providers

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Application

2.1 Where the technique has been applied 2.1.1 How can Supply Chain Management (SCM) be applied to an organisation? 2.2 2.3 2.4 2.5 Types of firms/ organisations where SCM can be applied Duration and implementation cost of Supply Chain Management Conditions for implementation European organisations supporting the implementation of the method

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Implementation procedure

3.1 Steps-actions/ phases 3.1.1 Implementing a competitive approach to Warehousing and Distribution 3.2 3.3 Partial techniques and tools included in each step Related software

4

Bibliographic References

Annex

INNOREGIO project

S. Zygiaris, Msc, BPR Engineer BPR Hellas SA

SUPPLY CHAIN MANAGEMENT

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1
1.1

DESCRIPTION
What is the Supply Chain Management (SCM)
The best companies around the world are discovering a powerful new source of competitive advantage. It's called supply-chain management and it encompasses all of those integrated activities that bring product to market and create satisfied customers. The Supply Chain Management Program integrates topics from manufacturing operations, purchasing, transportation, and physical distribution into a unified program. Successful supplychain management, then, coordinates and integrates all of these activities into a seamless process. It embraces and links all of the partners in the chain. In addition to the departments within the organization, these partners include vendors, carriers, thirdparty companies, and information systems providers. Within the organisation, the supply chain refers to a wide range of functional areas. These include Supply Chain Management-related activities such as inbound and outbound transportation, warehousing, and inventory control. Sourcing, procurement, and supply management fall under the supply-chain umbrella, too. Forecasting, production planning and scheduling, order processing, and customer service all are part of the process as well. Importantly, it also embodies the information systems so necessary to monitor all of these activities. Simply stated, "the supply chain encompasses all of those activities associated with moving goods from the raw-materials stage through to the end user." Advocates for this business process realised that significant productivity increases could only come from managing relationships, information, and material flow across enterprise borders. One of the best definitions of supply-chain management offered to date comes from Bernard J. (Bud) LaLonde, professor emeritus of Supply Chain Management at Ohio State University. LaLonde defines supply-chain management as follows: "The delivery of enhanced customer and economic value through synchronised management of the flow of physical goods and associated information from sourcing to consumption. "As the "from sourcing to consumption" part of our last definition suggests, though, achieving the real potential of supply-chain management requires integration--not only of these entities within the organisation, but also of the external partners. The latter include the...
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