Midterm

Topics: Supply chain management, Supply chain, Logistics Pages: 4 (985 words) Published: January 28, 2014
Supply Chain Management (SCM) Overview: Explain the SCM concept. SCM is 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.“ Also, SCM consists of multiple firm collaborating to leverage strategic positioning and to improve operating efficiency. For each firm involved, the supply chain relationship reflects a strategic choice. A supply chain strategy is a channel and business organizational arrangement based on acknowledge dependency and collaboration. Supply chain operations require managerial processes that span traditional functional areas within individual firm and link suppliers, trading partners, and customers across business boundaries. SCM Logistics: Describe the scope and role of the logistics process within SCM operations. Logistics is the management of the flow of materials and services between the point of origin and the point of use in order to meet the requirements of customers or corporations. Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, and often security. Logistics is a channel of the supply chain which adds the value of time and place utility. Additionally, the core competency of logistics:

1. Provides a superior service in the positioning of materials where and when required and/or a lower total cost than competitors in the industry. 2. Maximizes value by facilitating revenue creation and/or lowering the cost of sales. 3. Proactively uses logistics as a competitive advantage in cost and service strategies. Therefore, logistics should be managed as an integrated effort to achieve customer satisfaction at lowest total cost. Logistic performed in this manner creates value. SCM Logistics: Detail the trade-offs within the logistics process. There...
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