Supply Chain Management

Supply Chain Management  

Supply chain management is range of activities that required to planning, controlling and implement the product stream from acquiring  raw materials and production through distribution to the final of customer.

Supply chain management encompasses integrated of the planning and implementation of the processes that needed to make the best on the flow of information, materials, and financial capital in areas include the demand planning, production, resources, inventory management and storage, transport or logistics and also expert efficiency product return. Both businesses and software strategies are specific to use in order to create competitive of advantages.

     Supply chain management and logistics of the terms are often confused or used synonymous. However, logistics is the supply chain management component. It focuses on the transferring products or material in the most effective manner. So, that they will arrive at right place at the right time. It managing some activities such as packing, transportation, distribution, warehousing and delivering.

     On the other hand, Supply chain management involves in various activities, such as raw material resources strategic, obtaining the best prices for materials and good, and coordinating the supply chain of vision effort across the network of supply chain partners, to a few name.

      Supply chain management is a wide and complex effort that relies on every partner from supplier to the manufacturer with goes smoothly. Therefore, effective supply chain management also needed manage the change,collaboration and risk management to create alignment and communication between of the all entities.

     Additionally, the sustainability of supply chain includes environmental, legal issues and social, in addition to sustainable acquisition and the concepts that related to corporate social responsibility that assess the company's impact on the environment and social well being is a key area of concern for company.

Benefit of supply chain management...

     Supply chain management are creates efficiency, increases the profits, improves the collaboration, reduce the costs and more. Supply chain management enables company to a better managing demand. Bring the right inventory, handle interruptions, meet a minimum costs and meet a customer demand in the most effective way. The benefit of this supply chain management are achieved through an appropriate strategies and software to help overcome the complexity of the supply chain.

      An integrated supply chain is a process where by the every phrase of raw material procurement to production, quality control for packing, distribution or supply to the delivery is ultimately able to be streamlined and inseparable. It is a holistic combination of various processes, which may be under the full control of one company or some of the partner will jointly have a collective control over an integrated process. The integrated supply chain or supply chain integration has several advantages that  most companies have shifted to integrated supply chain management. However, there have some weaknesses too as well.

 The advantages of Integrated Supply chain...

• Revenue increase - Integrated supply chains are enable companies to focus on the assets that allow the organizations to earning more rewards. There is often a business aspect that will have a greater impact on income and therefore it must be optimized as much as possible. Integrated supply chain management enables companies to priority and focus on the specific assets that will improve their products, increase operating profitability or increase market share.

• Competitiveness   -  With financial advantages, more stringent compliance and better product. The company will be able to resist the competition and emerge as a winner with integrated supply chain management. 

• Quality control    - Supply chain integration helps ensure quality. When there is a joint attempt to ensure a strict compliance inspection. It is very difficult to approve or passes the wrong product. There is only one party overseeing compliance throughout the process.

The disadvantages of integrated supply chain...

• Excessive rules  - Integrated all providers will pose a challenge for businesses that trying to manage every internal and external supply. Not every of supplier is required to comply with any rules or norms. A company trying to have a generic approach that will occur with the integration supply chain management will not force all its supplier to comply with the same standard.

• Vulnerability to system collapsed   - There is collapse in checks and balances in the event of any delays in the examination or compliance inspection. The integrated supply chain means a mistake where it can bring the whole system down.

• Needless complication  - Integrated supply chain management can easily lead  complicated scenarios where resources are shared and are not in vain. Not every supplier needs all systems. Every supplier and department should operate in its own right while overcoming its witnesses.

The role of supply chain management software...

       Technology is important in managing supply chains. and Enterprise resources planning vendors offers a module that focuses on relevant areas. There are also vendors of business software that focus specifically on supply chain management Some important areas to keep in mind.         Supply chain is the planning software  for the activities such as demand management. Next, Supply chain software supply for activity such as daily manufacturer operations. Then, Provide supply chain vision software for task such as tracking and anticipating risks and managing them proactively. After that, Software management system and transportation management systems such managing transfer for goods. Lastly, Store management systems for activities related to warehouse.

Use of Supply chain management in e-commerce...

     E-commerce is an electronic commerce with goods and services. E-commerce means an integrated electronic process across the company that uses information and communication technology to eliminate media interruptions. In the e-commerce business process and the transfer of information is conducted electronically to improve  the efficiency of the process and speed it up. For example, execution chain, sites, software is an efficient support for e-commerce solutions.
        The conclusion is supply chain management involves co-operation between partners, suppliers and outsourcing customers. Supply chain management involves in integration of these activities and aims to enhance the relationship between various parties while achieving a sustainable competitive advantage through high quality and low cost product. It closely related to enterprise resources planning and electronic trading systems.The future of supply chain may be more dynamic and comprise a network of collaborative values where productivity and efficiency are always maximized. So, frequent testing of infrastructure using simulated disruptions can provide a better understanding of potential issues and possible disadvantages.Organization must develop an appropriate for the supply chain performance assessment and keep measure the performance.

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Reference source :-

• Margaret,R,2018,Supplychainmanagement,byhttps://www.searcherp.techtarget.com, Retrieved 2018,June 6. 
• aimseducation,2017,Advantagesanddisadvantages,byhttps://www.aimseducation/supplychainmanagement.com,Retrieved 2018,June 6 
• Wiki,2012,supplychainmangementecommerce,byhttps://www.en.ecommercewiki.info.com.my,Retrieved 2018,June 6