The supply chain is the facilitation of movement of goods, services, information or financial resources from a supplier or producer to the end consumer. Intermediaries such as wholesalers and retailers may or may not be part of the chain. Supply chain management (SCM) is the act of ensuring that this process takes place effectively. A reduction in inventory with time is regarded as an indicator that indeed the supply chain is achieving its objective.
There are three types of flows that have to be considered individually and collectively: product flow, information flow and financial flow. Product flow refers to the movement of goods and services from the supplies to the end consumer. Information flow is the transmission of orders and updating consumers on the status of their orders as they are transported to them. Financial flow concerns title ownership arrangements, consignments, payment schedules and credit agreements.
In a bid to make the process more efficient, most SCM firms have adopted the use of web based applications. The applications that are used here are of two main types: those used for planning and those that make execution possible. Planning applications are designed as algorithms that help in the filling of orders. Execution applications, on the other hand, help in product tracking, management of various materials as well as the relevant financial information.
Open data models used by some of the applications make it possible to share data within an enterprise or between the enterprise and other stakeholders. This is what leads to what is sometimes referred to as an extended enterprise. When the data is to be shared, it will be held in a number of data warehouses found at different sites in different companies. By sharing the data with suppliers, the time-to-market of goods is markedly minimized.
Another important step that needs to be undertaken so as to get maximal benefits of SCM is shifting from concentrating on the management of individual function and consideration integration. Just as is the case with data sharing, the idea here is to look at the different departments within the enterprise as well as other players such as customers, suppliers and product developers as part of a single unit.
Sustainability and social responsibility are issues that have to be addressed by all companies. As a supply manager, you need to ensure that all the enterprises involved meet the minimum requirements. Environmental sustainability is in particular an important factor in modern businesses. Consumers are becoming increasingly environmental conscious and are likely to favor products from companies that share their beliefs. Choose suppliers that care about their environmental.
To be certified as a supply chain manager, you will need to meet a number of requirements. One of these requirements is that you need to acquire the relevant skills and knowledge. This relates to functions such as warehousing, transportation, management of inventory and business continuity strategies and so on. In most countries, there is a certification exam that one has to sit before they are registered by the relevant professional body.
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.
There are three types of flows that have to be considered individually and collectively: product flow, information flow and financial flow. Product flow refers to the movement of goods and services from the supplies to the end consumer. Information flow is the transmission of orders and updating consumers on the status of their orders as they are transported to them. Financial flow concerns title ownership arrangements, consignments, payment schedules and credit agreements.
In a bid to make the process more efficient, most SCM firms have adopted the use of web based applications. The applications that are used here are of two main types: those used for planning and those that make execution possible. Planning applications are designed as algorithms that help in the filling of orders. Execution applications, on the other hand, help in product tracking, management of various materials as well as the relevant financial information.
Open data models used by some of the applications make it possible to share data within an enterprise or between the enterprise and other stakeholders. This is what leads to what is sometimes referred to as an extended enterprise. When the data is to be shared, it will be held in a number of data warehouses found at different sites in different companies. By sharing the data with suppliers, the time-to-market of goods is markedly minimized.
Another important step that needs to be undertaken so as to get maximal benefits of SCM is shifting from concentrating on the management of individual function and consideration integration. Just as is the case with data sharing, the idea here is to look at the different departments within the enterprise as well as other players such as customers, suppliers and product developers as part of a single unit.
Sustainability and social responsibility are issues that have to be addressed by all companies. As a supply manager, you need to ensure that all the enterprises involved meet the minimum requirements. Environmental sustainability is in particular an important factor in modern businesses. Consumers are becoming increasingly environmental conscious and are likely to favor products from companies that share their beliefs. Choose suppliers that care about their environmental.
To be certified as a supply chain manager, you will need to meet a number of requirements. One of these requirements is that you need to acquire the relevant skills and knowledge. This relates to functions such as warehousing, transportation, management of inventory and business continuity strategies and so on. In most countries, there is a certification exam that one has to sit before they are registered by the relevant professional body.
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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