Essay of Scm

Topics: Supply chain management, Management, Inventory Pages: 6 (1817 words) Published: May 11, 2013
1. Define supply chain integration process and need for creating an effective supply chain organization structure. Explain with an illustration. 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. Supply chain management is a cross-function approach including in managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. Successful SCM requires a change from managing individual functions to integrating activities into key supply chain processes. An example scenario: the purchasing department places orders as requirements become known. The marketing department, responding to customer demand, communicates with several distributors and retailers as it attempts to determine ways to satisfy this demand. Information shared between supply chain partners can only be fully leveraged through process integration.Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. The key supply chain integration processes are: * Customer relationship management

* Customer service management
* Demand management style
* Order fulfillment
* Manufacturing flow management
* Supplier relationship management
* Product development and commercialization
* Returns management
The organizational structure of a supply chain management according to an organizational flowchart includes the components of internal processes, coordination and collaborative efforts. The organizational structure is horizontal by tracking an item or good from start to finish. Within the physical structure are channel partners or vendors, suppliers, third party service providers and customers. The horizontal structure supports communication at all levels during the functional and physical process. The supply chain organization structure consists of the following organizations: Root organization, Default organization, Supply chain management organization, Supplier hub organization, Asset store organization, Supplier organization, Supplier organization A, B, C, and Buyer organization.

* Root organization
* All organizations in the business become descendents of the root organization. As well, the administrators who will maintain the online site, the Site Administrators, are added directly under the root. * Default organization

* By default, nothing is placed under the default organization. * Supply chain management organization
* The supply chain management organization is created to own all of the supply chain related organizations (with the exclusion of the organization that owns the suppliers). The supply chain management organization owns the following child organizational units: * Supplier hub organization

* The supplier hub organization is created to own the supplier hub. The administrators who maintain the supplier hubs functions, as well as administering the supplier organization, are termed channel administrators and are owned directly by the supplier hub organization * Asset store organization

* The asset store organization is created to own all assets that are used to create stores for suppliers. * Supplier organization
* The supplier organization is created to own all of the suppliers in the supply chain. A child organization is created for each supplier. * Supplier organization A, B, C
* A new supplier organization is...
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