Supply Chain Management
Chapter 1 : Supply Chain Management - An Overview
Definition of a Supply Chain
Components of a
Supply Chain
Customers Distributors Manufacturers Suppliers
The
Concept of Supply Chain Management
Supply Chain Management - Schools
of Thought
Functional school
Linkage/ Logistics School
Information School Integration/ Process School
Supply Chain
Management Processes
Customer Relationship Management
Customer
Service Management
Demand Management
Customer Order Fulfillment
Manufacturing Flow Management
Procurement Management/Supplier Relationship Management
Product Development and
Commercialization
Returns Management
Factors Driving the Evolution
of SCM
Customer Expectations Globalization
Competition
Advances
in Information Technology
Objectives of SCM
Chapter Summary
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A supply chain is a network of manufacturers, suppliers,
distributors, transporters, providers of storage facilities and retailers. It
performs the functions of procurement and acquisition of material, processing
and transformation of the material into intermediate and finished tangible goods
and finally, the physical distribution of the finished goods to the intermediate
or final customers.
This chapter explained the concept of supply chain and supply chain management.
Supply chain management involves the use of a set of approaches to integrate
efficiently the activities of suppliers, manufacturers, warehousing providers
and retailers, so that goods are produced and distributed in right quantities,
to the right locations, and at the right time, in order to minimize system-wide
costs while meeting customer service expectations.
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It also traced the evolution of supply chain management by
studying the definitions of theorists belonging to different schools of thought.
Bechtel and Jayaram have classified various views on SCM into four schools of
thought: Functional School, Linkage/logistics School, Information School and
Integration/process School. The chapter also discussed the various supply chain
management processes carried out across the supply chain.
They include, customer relationship management, customer service management,
demand management, order fulfillment, manufacturing flow management,
procurement, product development and commercialization, and returns management.
It concludes by exploring the drivers of the growth of supply chain management
and the objectives of companies adopting supply chain management practices.
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Short Case Studies / Caselets