Supply chain management
1.1 Introduction
Supply chain management, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. Figure 1 shows the main components of Supply Chain Management
Figure 1 Supply Chain Management main components
Supply chain strategy- is not simply a linear derivative of the business strategy. At best, supply chain strategy can be the enabler of the business strategy. If the business strategy is to be the low cost provider, the supply chain strategy should support this. It is just like developing a business strategy, look to includes core competencies, focus, and means of differentiation when developing a supply chain strategy.
Logistic Management - is a supply chain management component that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination.
Procurement - is the acquisition of goods, services or works from an outside external source. It is favorable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location
Information Management- is competitive advantage, support of business processes, information and control, digital business, integration of business with technology, organizational communication, and data management. Understanding that high-quality information adds value to existing products and services, enhances the creation of new products, changes the efficiency and effectiveness of business
Supply chain management, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. Figure 1 shows the main components of Supply Chain Management
Figure 1 Supply Chain Management main components
Supply chain strategy- is not simply a linear derivative of the business strategy. At best, supply chain strategy can be the enabler of the business strategy. If the business strategy is to be the low cost provider, the supply chain strategy should support this. It is just like developing a business strategy, look to includes core competencies, focus, and means of differentiation when developing a supply chain strategy.
Logistic Management - is a supply chain management component that is used to meet customer demands through the planning, control and implementation of the effective movement and storage of related information, goods and services from origin to destination.
Procurement - is the acquisition of goods, services or works from an outside external source. It is favorable that the goods, services or works are appropriate and that they are procured at the best possible cost to meet the needs of the purchaser in terms of quality and quantity, time, and location
Information Management- is competitive advantage, support of business processes, information and control, digital business, integration of business with technology, organizational communication, and data management. Understanding that high-quality information adds value to existing products and services, enhances the creation of new products, changes the efficiency and effectiveness of business
References: 22 Appendix 1 23 Appendix 2 24