supply chain mgmt
Supply chain management (SCM) is the management of the flow of goods. It includes the movement and storage of, work-in-process inventory, and finished goods from point of origin to point of consumption. Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain.[2] 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."[3]
SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.
Opportunities
Barriers to Entry
Certain segments, such as warehousing, require expensive physical assets, but it's possible to launch companies in transportation management and software development with minimal capital. Scaling up, however, can be a difficult feat for small players in the industry, says Evan Armstrong, the president of Armstrong & Associates. Transportation management companies, for instance, will have a tough time negotiating prices with trucking companies if they don't bring in significant business.
Growth Potential
Over the next five years, the global supply chain management industry is expected to grow more than 9% annually, according to ARC Advisory Group, a technology research and advisory firm.
Watch for growth especially in freight transportation arrangement. Sales in that sector have risen an average of 20.5% over the past two years, according to Sageworks. If you have products or services that help firms lower their environmental impact, as well as costs, you'll see even more growth opportunities over the next five years, says IBISWorld analyst Lauren Setar.
Where the Action Is
As manufacturing
SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.
Opportunities
Barriers to Entry
Certain segments, such as warehousing, require expensive physical assets, but it's possible to launch companies in transportation management and software development with minimal capital. Scaling up, however, can be a difficult feat for small players in the industry, says Evan Armstrong, the president of Armstrong & Associates. Transportation management companies, for instance, will have a tough time negotiating prices with trucking companies if they don't bring in significant business.
Growth Potential
Over the next five years, the global supply chain management industry is expected to grow more than 9% annually, according to ARC Advisory Group, a technology research and advisory firm.
Watch for growth especially in freight transportation arrangement. Sales in that sector have risen an average of 20.5% over the past two years, according to Sageworks. If you have products or services that help firms lower their environmental impact, as well as costs, you'll see even more growth opportunities over the next five years, says IBISWorld analyst Lauren Setar.
Where the Action Is
As manufacturing