Strategic Supply Chain Management : Scm & Lean Management Concepts
Strategic Supply Chain Management: SCM and Lean Management Concepts
LAW CHONG SENG University Technology of Malaysia (UTM) cslaw5@live.utm.my, mylawcs@gmail.com
ABSTRACT One of the most significant paradigm shifts of modern business management is that individual businesses no longer compete as solely autonomous entities, but rather within supply chains. In this emerging competitive environment, the ultimate success of the business will depend on management’s ability to integrate the company’s intricate network of business relationships. Successful supply chain management requires cross-functional integration within the firm and across the network of firms that comprise the supply chain. It is focused on relationship management and the improvements in performance that result from better management of key relationships. By understanding the supply chain management processes and how they should be implemented, firms will be able to create more integrated supply chains which will lead to higher revenues and increased profitability for all member firms. Keywords: Strategic Supply Chain Management, Lean Management, Logistics, Inventory Control
INTRODUCTION Supply chain management encompasses the companies and the business activities needed to design, make, deliver, and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fits into one or more supply chains and has a role to play in each of them. The pace of change and the uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participate in and to understand the roles that they play. Those companies that learn how to build and participate in strong supply
chains will have a substantial competitive advantage in their markets. A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not
LAW CHONG SENG University Technology of Malaysia (UTM) cslaw5@live.utm.my, mylawcs@gmail.com
ABSTRACT One of the most significant paradigm shifts of modern business management is that individual businesses no longer compete as solely autonomous entities, but rather within supply chains. In this emerging competitive environment, the ultimate success of the business will depend on management’s ability to integrate the company’s intricate network of business relationships. Successful supply chain management requires cross-functional integration within the firm and across the network of firms that comprise the supply chain. It is focused on relationship management and the improvements in performance that result from better management of key relationships. By understanding the supply chain management processes and how they should be implemented, firms will be able to create more integrated supply chains which will lead to higher revenues and increased profitability for all member firms. Keywords: Strategic Supply Chain Management, Lean Management, Logistics, Inventory Control
INTRODUCTION Supply chain management encompasses the companies and the business activities needed to design, make, deliver, and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fits into one or more supply chains and has a role to play in each of them. The pace of change and the uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participate in and to understand the roles that they play. Those companies that learn how to build and participate in strong supply
chains will have a substantial competitive advantage in their markets. A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not
References: James W. Martin. (2007), Lean Six Sigma for Supply Chain Management, The McGrawHill Companies, Inc, New York. Ronald H. Ballou. (1999), Business Logistics Management, Prentice-Hall, Inc, New Jersey. William J. Stevenson. (2005), Operations Management, The McGraw-Hill Companies, Inc, New York. Richard B. Chase, Nicholas J. Aquilano and F. Robert Jacobs. (1998), Production and Operations Management, The McGraw-Hill Companies, Inc, New York. John J. Coyle, Edward J. Bardi and C. John Langley Jr. (2003), The Management of Business Logistics, South-Western, Canada. Tilak Raj. (2004), Logistics and Supply Chain Management, Indira Gandhi National Open University School of Management Studies, India. 9