The supply chain is a term that is used to refer to the movement of goods, financial resources and information from the producer to the consumer. Intermediaries (wholesalers and retailers) are often part of the chain as well. Supply chain management (SCM) is the act of overseeing this process and making sure that the movement is seamless. The process will be deemed as being effective if there will be a reduction in inventory.
The three types of flow (product, information and financial) all contribute the success of SCM. Product flow is simply the movement of goods (and services) downstream (from the supplier to the target consumer). Information flow is bidirectional. This means that it may originate from the consumer or the supplier. Financial flow is concerned with aspects such as consignments, payment schedules, ownership arrangements and credit agreements among others.
The increased use of web-based applications in SCM is one of the measures that have been undertaken to increase the efficiency. The available applications fall under two major categories: planning and execution applications. Those that fall under the planning category are mainly involved with the placement of orders. Those classified as execution orders, in contrast, are used in tracking products, financial information and other materials.
The open data model is an arrangement in which applications allow data to be shared between the various departments of an enterprise and between different enterprises in the chain. To make the process easier, information that is to be shared is stored in various data warehouses found in different sites and in different companies. The sharing process has helped markedly reduce the time-to-market of many goods and services.
Business integration is another step that should be taken so as to make the most use of SCM. What this means is that rather than focusing on the management of individual units, the focus should be on integrating different departments and related enterprises. Suppliers, customers, product developers and other stakeholders should be facilitated to communicate each other if this is to be successful.
Business have been under pressure to be more environmental conscious. It is interesting to note that about 75% of carbon footprint for an average company. All the enterprises in the supply process should strive to ensure that they reduce environmental damage to the very minimum. As a manager, appreciate that consumers are becoming increasingly preferential of products that have been produced through processes that cause the least impact to the environment.
Supply chain managers need to be certified to increase their chances of securing employment opportunities. The first step in this regard is to acquire the relevant skills and knowledge in all the relevant areas. Such include, for example, transportation, warehousing of goods, inventory management and business continuity skills among others. Most countries have professional bodies that take care of the registration process.
Proper management of the supply chain is needed for goods and services to flow efficiently from the producer to the end consumer. A delay in the chain affects all that are involved. Sharing of information between departments and enterprises doing business with each other goes a long way into ensuring that everybody gets what they want when they want it.
The three types of flow (product, information and financial) all contribute the success of SCM. Product flow is simply the movement of goods (and services) downstream (from the supplier to the target consumer). Information flow is bidirectional. This means that it may originate from the consumer or the supplier. Financial flow is concerned with aspects such as consignments, payment schedules, ownership arrangements and credit agreements among others.
The increased use of web-based applications in SCM is one of the measures that have been undertaken to increase the efficiency. The available applications fall under two major categories: planning and execution applications. Those that fall under the planning category are mainly involved with the placement of orders. Those classified as execution orders, in contrast, are used in tracking products, financial information and other materials.
The open data model is an arrangement in which applications allow data to be shared between the various departments of an enterprise and between different enterprises in the chain. To make the process easier, information that is to be shared is stored in various data warehouses found in different sites and in different companies. The sharing process has helped markedly reduce the time-to-market of many goods and services.
Business integration is another step that should be taken so as to make the most use of SCM. What this means is that rather than focusing on the management of individual units, the focus should be on integrating different departments and related enterprises. Suppliers, customers, product developers and other stakeholders should be facilitated to communicate each other if this is to be successful.
Business have been under pressure to be more environmental conscious. It is interesting to note that about 75% of carbon footprint for an average company. All the enterprises in the supply process should strive to ensure that they reduce environmental damage to the very minimum. As a manager, appreciate that consumers are becoming increasingly preferential of products that have been produced through processes that cause the least impact to the environment.
Supply chain managers need to be certified to increase their chances of securing employment opportunities. The first step in this regard is to acquire the relevant skills and knowledge in all the relevant areas. Such include, for example, transportation, warehousing of goods, inventory management and business continuity skills among others. Most countries have professional bodies that take care of the registration process.
Proper management of the supply chain is needed for goods and services to flow efficiently from the producer to the end consumer. A delay in the chain affects all that are involved. Sharing of information between departments and enterprises doing business with each other goes a long way into ensuring that everybody gets what they want when they want it.
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