SUPPLY CHAIN MANAGEMENT
Supply Chain Management (SCM) is an essential part of every business. The supply chain of a company is its network consisting of all the companies’ suppliers, itself, and its customers. Without a successful SCM system, no matter how small a company might seem, a business cannot successfully operate.
The supply chain encompasses every aspect of a business’s operations. It begins with raw materials, continues through production phases, creating finished goods, through distribution, and finally to the end consumer. The figure above shows SCM’s importance by graphically organizing how it encompasses the daily operations of a business. As we can see, SCM includes every portion relevant to a company’s operations. General benefits a successful SCM presents a company are:
• Less uncertainty, errors, delays and losses along the supply chain
• Lower costs by improving efficiency and production
• Low stock size
• Better information sharing and highlighting
These contributions give a company another asset: competitive advantage. If a Company A’s SCM operates more efficiently than another Company B’s SCM, then Company A can produce its product at a lower cost and sell at a lower price.
Supply Chain Management is constantly seeking ways to improve itself, to become more efficient and gain the competitive advantage. I believe a company without a SCM system will flounder at best.
Green supply refers to the way in which innovations in supply chain management and industrial purchasing may be considered in the context of the environment1. Environmental supply chain management consists of the purchasing function’s involvement in activities that include reduction, recycling, reuse and the substitution of materials2. The practice of monitoring and improving environmental performance in the supply chain3. Integrating environmental thinking into a supply chain management, including product design, material resourcing and