Supply Chain Management Essay

2782 words - 11 pages

Supply Chain Management (SCM) is the integration of information, technologies and management of key business functions which is linked directly or indirectly and provides services to the same customer. It promotes the flow of products downstream from raw materials to the end consumer and the flow of information upstream from consumer to supplier [1].

In above figure it explains that raw materials is procured and then it goes to the supplier for processing of raw material, suppliers supplies the processed raw materials to the manufactures, producers transform these raw material into finished goods, distributors delivers finished goods, packed materials to customers or retailers and retailers sell that product to consumers.

Supply chain management was introduced due to inability of the organizations to understand the entire string of activities that governed the delivery of the product to the final customer. Previously companies were too restricted in their outlook and were concerned only with activities within their own boundaries. In essence, supply chain management integrates supply and demand management within and across companies. SCM ensures higher efficiency of modern businesses, by coordinating and synchronizing various organizations in the supply chain [2]. There are a variety of supply chain models, which address both the upstream and downstream sides. The SCOR (Supply-Chain Operations Reference) model. This literature review gives a brief description of the SCOR model.

2. BACKGROUND
2.1. THE SUPPLY CHAIN COUNCIL
Supply Chain Council (SCC) is a global nonprofit organization (NGO) whose framework, improvement methodology, training, certification and benchmarking tools help member organizations make dramatic, rapid, and sustainable improvements in supply chain performance. The Supply Chain Council was formed in 1996 by Pittiglio Rabin Todd & McGrath (PRTM), a management consulting firm and AMR Research and initially included a consortium of 69 voluntary member companies. Its mission today is to perpetuate the uses of the SCOR model through technical development, research, education and conference events [3].
2.2. SCOR
SCOR is a management tool, spanning from the supplier's supplier to the customer's customer [2]. The Supply Chain Operations Reference (SCOR) is a business process reference model which was developed by the supply chain council (SCC).
“The SCOR model is the only supply chain
framework that we found that links performance
measures, best practices, and software requirements
to a detailed business process model”
—Logistics Management Institute June 1999

The SCOR-model captures the council’s general view of supply chain management. While much of the underlying content of the model has been used by practitioners for many years, the SCOR-model provides a unique framework that links business process, metrics, best practices and technology features into a unified structure to support communication among...

Find Another Essay On Supply Chain Management

Supply Chain Management Essay

1290 words - 5 pages Introduction:Supply chain management (SCM) is the combination of art and science of procuring raw components in order to make a product or service and deliver it to customers. According to the Council of Supply Chain Management Professionals (CSCMP), Supply Chain Management "encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also

Supply Chain Management Essay

785 words - 3 pages Supply Chain <Page PAGE 1 of NUMPAGES 5> Dana SackmanWeek 1 - Supply Chain Management PaperISCOM 370 - Strategic Supply Chain ManagementMarch 22, 2010University of Phoenix - Leon PowellSupply Chain ManagementSupply chain management can be described as the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers. The purpose of

Supply Chain Management

988 words - 4 pages or service. In an operations management perspective, the role of a business organization is to transform raw materials into finished goods. The finished goods must have more value in order to gain profit. A supply chain is thus considered as a web of interrelated processes, departments and processes to be able to transform raw materials into finished goods and deliver these to customers (Russell 2000). It involves all of the functions, activities

Supply Chain Management - 2023 words

2023 words - 8 pages companies were $72 billion for the fiscal year that ended October 31, 2002.In the late 1980s, HP had faced spiraling inventory and poor customer satisfaction. Solving the latter crucial problem was flagged in 1990 by then CEO John Young as a key objective for the entire company, and one way of accomplishing the objective was through better supply chain management. The supply chain for HP's products contain manufacturing, research, and development

Supply Chain Management - 1158 words

1158 words - 5 pages Supply chain management (SCM) can best be described as link or connection between suppliers, manufacturers, distributors, and customers. Supply chain doesn't only apply to materials being moved but also applies to information being moved. In practice, it's moving items from supplier to manufacture to distributer to retailer and finally reaching the customers. The Supply chain method of shipment or way of business hasn't all ways been around in

Supply Chain Management

5464 words - 22 pages Supply Chain Management Introduction Supply chain management is emerging as one of the most powerful business practices. It is transforming the way manufactures operate and work with partners - even the way they think about business. Why all the sudden interest? Mere observation of industrial practice brings to light a simple truth; very few materials remain in the constant ownership of one person, persons or company from their

Dell Supply chain management

841 words - 4 pages Supply chain simulation learning report Supply chain management is an integrated approach to planning, implementing and controlling the flow of information, materials and services from the raw materials and suppliers for the manufacture of the completed or finished product for the distribution to the customer. He we see about supply and demand which is the back bone of any market economy. Demand refers to how much of products are demanded by

Supply Chain Management - 3249 words

3249 words - 13 pages IntroductionThe following paper is a discussion about how supply chain management has been one of the major issues of concern for businesses for several years. In the present era of extremely competitive markets, increased level of globalization and expansion of organization's operations to а global scale, it has become increasingly important for the firms to fully integrate their overall operations so that they can develop а

Supply Chain Management - 1092 words

1092 words - 4 pages Supply chain management (SCM) is the practice of coordinating the flow of goods, services, information and finances as they move from raw materials to parts supplier to manufacturer to wholesaler to retailer to consumer. This process includes order generation, order taking, information feedback and the efficient and timely delivery of goods and services. In order for a business to be successful, the chain must remain as uncluttered as possible

Supply Chain Management - 9446 words

9446 words - 38 pages 1. IntroductionOver the past few years the area of Supply Chain Management (SCM) has received much attention by a large number of academics, consultants and practitioners who are involved actively or not with the processes of developing, manufacturing, distributing, commercialising/selling and ultimately delivering a product or a service to end consumers. This ever-increasing interest has been caused by two main reasons. The first one is that

Supply Chain Management - 810 words

810 words - 4 pages -launch said product and turn the negative into a positive. Sometimes it may take a failure to learn a valuable lesson. Porter’s Five Forces Model Dunkin Donut’s is making strides in supply chain management by using Porter’s Five Forces Model. A few examples of how it is being used, in 2012 “Dunkin Donuts announced that is has combined four separate regional purchasing organizations into a single nationwide US procurement entity.” (Murray 2012

Similar Essays

Supply Chain Management Essay 541 Words

541 words - 2 pages organizations are developing and implementing better systems, which can forecast the demand and supply in a flexible way to the changing needs. The changing business market has forced the organizations to employ highly skilled people on a better infrastructure and to develop supply chain mechanisms, which is flexible to the changing market conditions and demand. IN this document, we will discuss the various aspects of supply chain management in

Supply Chain Management Essay 668 Words

668 words - 3 pages “Supply chain management is the flow of goods, services, and information from the initial sources of materials and services to the delivery of products and activities occur in the same organization or in other organizations”(Horngren695). This approach enables Regal Marine (R.M) to be highly effective, efficient, and profitable. More over supply chain management effectively manage your supply chain by synchronizing the demand for your products

Supply Chain Management Essay

1711 words - 7 pages Supply Chain Management Supply chain management lets an organization get their products of raw goods to the place they are needed at the right time, the right place, and what exactly they have ordered, and at a reasonable cost. It moves from parts supplier to manufacturers to wholesale to retailer then consumer. Supply chain management plays an important role supplying the manufacturers all the way down to the consumer, so they can satisfy

Global Supply Chain Management Essay

822 words - 3 pages consists of all stages involved in fulfilling a customer request. It is a network of facilities and distribution options that performs the function of acquiring materials, transformation of these materials into finished products, and the distribution of these finished products to customers.With these definitions, the supply chain management is the integration of key business processes from end user through original supplier that provides products