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Supply chains were originally defined as encompassing all activities associated with the flow and transformation of goods from raw materials through to the end user, as well as the associated information flows.
Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve a competitive advantage.
The management of upstream and downstream value-added flows of materials, final goods, and related information among suppliers, company, resellersand final consumers.
As a consequence, costs must be lowered throughout the chain by driving out unnecessary expenses, movements, and handling.
Efficiency must be increased, and bottlenecks removed. The measurement of performance focuses on total system efficiency and the equitable monetary reward distribution to those within the supply chain.
The supply chain system must be responsive to customer requirements. It also includes coordination and collaboration with channel partnerswhich may be suppliersintermediariesthird-party service providers, or customers. More recently, the loosely coupled, self-organizing network of businesses that cooperate to provide product and service offerings has been called the Extended Enterprise.
Supply chain management is the management of such a chain. With SCEM, possible scenarios can be created and solutions devised. Including third-party logistics or other gathering agencies as part of the RM re-patriation process is a way of illustrating the new endgame strategy.
As organizations strive to focus on core competencies and become more flexible, they reduce their ownership of raw materials sources and distribution channels.
These functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively. The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations.
Less control and more supply chain partners lead to the creation of the concept of supply chain management. The purpose of supply chain management is to improve trust and collaboration among supply chain partners thus improving inventory visibility and the velocity of inventory movement, Importance[ edit ] Organizations increasingly find that they must rely on effective supply chains, or networks, to compete in the global market and networked economy.
In recent decades, globalization, outsourcing, and information technology have enabled many organizations, such as Dell and Hewlett Packardto successfully operate collaborative supply networks in which each specialized business partner focuses on only a few key strategic activities Scott, This inter-organisational supply network can be acknowledged as a new form of organisation.
However, with the complicated interactions among the players, the network structure fits neither "market" nor "hierarchy" categories Powell, It is not clear what kind of performance impacts different supply network structures could have on firms, and little is known about the coordination conditions and trade-offs that may exist among the players.
From a systems perspective, a complex network structure can be decomposed into individual component firms Zhang and Dilts, Find out the impacts that NAFTA has on your supply chain management – and how a 3PL can help you take advantage of the upside of free trade agreements.
Learn some examples of provisions included within NAFTA that have a direct effect on supply chain management – both in . Logistics Fulfillment Management (Deliver)— the supply chain process that plans, implements, and controls the efficient, effective flow and storage of goods, services, and related information from the point of origin to the point of consumption to meet customers' requirements.
This includes customer service ordering, shipment planning.
1. What is Logistics and Supply Chain Management? "Logistics typically refers to activities that occur within the boundaries of a single organization and Supply Chain refers to networks of companies that work together and coordinate their actions to .
Find out the impacts that NAFTA has on your supply chain management – and how a 3PL can help you take advantage of the upside of free trade agreements.
Understanding NAFTA and its Implications for Supply Chain Logistics. Tweet; We recently published a guide to equip logistics managers with the tools needed to develop a sound.
Supply chain management is an important subject for global businesses and small businesses alike. Learn how to create an efficient supply chain in any economic climate and deal with issues with your supply chain operation. Understanding the concept of supply chain resilience While the discussion of the relationship between logistics and supply chain management is far beyond the scope of this research, the related literature provides a sufficient theoretical justification for formulating the first research question presented above.
Moreover, the relationships.