Premium Essay

Study of Supply Chain Management

In: Business and Management

Submitted By chinar1990
Words 1749
Pages 7
What is supply chain management? [

A German paper factory receives its daily supply of 75 tons of recyclable paperas its raw material

In the 1980s, the term Supply Chain Management (SCM) was developed[5] to express the need to integrate the key business processes, from end user through original suppliers. Original suppliers being those that provide products, services and information that add value for customers and other stakeholders. The basic idea behind the SCM is that companies and corporations involve themselves in a supply chain by exchanging information regarding market fluctuations and production capabilities.
If all relevant information is accessible to any relevant company, every company in the supply chain has the ability to help optimize the entire supply chain rather than sub optimize based on a local interest. This will lead to better planned overall production and distribution which can cut costs and give a more attractive final product leading to better sales and better overall results for the companies involved.
Incorporating SCM successfully leads to a new kind of competition on the global market where competition is no longer of the company versus company form but rather takes on a supply chain versus supply chain form.

Many electronics manufacturers ofGuangdong rely on supply of parts from numerous component shops in Guangzhou

The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory and labor. In theory, a supply chain seeks to match demand with supply and do so with the minimal inventory. Various aspects of optimizing the supply chain include liaising with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance between lowest material cost and transportation, implementing JIT (Just In Time) techniques…...

Similar Documents

Premium Essay

Supply Chain Management

...THE IMPACT OF SUPPLY CHAIN MANAGEMENT ON GOVERNMENT INSTITUTIONS A Research Dissertation by GEORGE FREDERICK JACOBSON STUDENT NO. 94032512 B. TECH: PURCHASING MANAGEMENT Submitted in partial fulfilment of the requirements for the degree MBA in the Business School Faculty of Management Sciences TSHWANE UNIVERSITY OF TECHNOLOGY Supervisor: Prof. J A Watkins Pretoria 4 June 2007 PUBLICATION OF DISSERTATION The attention of the reader is specifically drawn to the fact that the national Government departments, who sanctioned this research study, specifically requested that the work should not be published due to the sensitivity of ongoing remedial actions. DECLARATION OF COPYRIGHT I hereby declare that this dissertation submitted for the degree (Magister Technologia) at the Tshwane University of Technology, is my own original unaided work and has not previously been submitted to any other institution or higher education. I further declare that all sources cited are cited or quoted are indicated or acknowledged by means of a comprehensive list of references. G.F. JACOBSON Copyright© Tshwane University of Technology (2007) i DEDICATION This study is dedicated to my family and friends for their love and support through this process allowing me to grow as a person. ii ACKNOWLEDGEMENTS I would like to express my sincere gratitude and appreciation to the following: My Lord and Saviour, Jesus Christ for His continued......

Words: 23698 - Pages: 95

Premium Essay

Commonalities and Differences Between Service and Manufacturing Supply Chains: Combining Operations Management Studies with Supply Chain Management

...Commonalities and Differences between Service and Manufacturing Supply Chains: Combining Operations Management Studies with Supply Chain Management Ming Zhou • Taeho Park San Jose State University, San Jose, CA John Yi Saint Joseph's University, Philadelphia, PA The service sector of the US economy has been gaining importance. As the service sector evolves, the study of service supply chain starts to gain attention. In this study, we conduct an exploratory review on the studies of manufacturing and service supply chains. We focus on the studies that explore the differences and commonalities between manufacturing and service supply chains. We combine operations management literature with supply chain studies in order to provide an interdisciplinary framework that brings up both the operational and strategic views on the management commonalities and differences between the two types of supply chains. I. INTRODUCTION The study of services has lagged the study of manufacturing. When Fred Harvey proposed that services can be standardized and managed systematically, standardization and systematic management had been applied in the manufacturing sector by pioneers such as Eli Whitney and Frederick Taylor. The first business school course that focused on service management was not introduced until 1973 (Heineke and Davis, 2006). Despite the lag of academic attention, the service sector has been gaining importance as the US economy becomes more and more service-centric....

Words: 4515 - Pages: 19

Premium Essay

Supply Chain Management

...EXECUTIVE SUMMARY As every business concern irrespective of its size, nature, and age needs an adequate concentration on its supply chain to carry out regular business operations and survive in the international competition. A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. The project report titled “Consumer Buying Behavior of Volkswagen Cars For Shreekripa Automobiles Pvt. Ltd, Nashik” deals with this matter and is based on the in-house industrial training at Shreekripa Automobiles Pvt. Ltd, pertaining to the requirement for the Master of Business Administration from “Kautilya Institute of Management & Research, Wagholi, Pune”. Everest Industries Ltd formerly subsidiary of ACC Ltd, Founded in 1934, is engaged in building solutions like Roofing, Ceiling, Wall, Flooring, Cladding, Door and the Pre Engineered steel Buildings for the Industrial, Commercial & Residential sector. Holcim, world’s second largest cement producer gained control of Everest Industries after acquiring ACC by gaining majority stake in Ambuja cements India from Sekhsarias. In 2006 Holcim exited from Everest Industries after selling their stake back to Everest finvest (India) controlled by Sekhsarias for Rs 134 a share. Company is......

Words: 5605 - Pages: 23

Premium Essay

Strategic Supply Chain Management

...moves on to buy a rival product. The second moment of truth depends on the buyer’s satisfaction when consuming the product. This, too, has a crucial impact on consumer loyalty, but is beyond the scope of this case study. Detailed consumer surveys in July 2000 told P&G that in 55% of cases (75% for promotional items), consumers were not satisfied when they looked on the shelf for the products they wanted. The exact product variant, in the size and packaging the shopper sought, was available less than half the time. Something had to be done. Responsibility for having the product on the shelf every time a shopper wants it used to be seen as purely a matter for the retailer. If retailers got their forecasts wrong and ordered the wrong volumes, the manufacturer was not aware of the problem, or at least not concerned about it. But, at the end of the day, both the manufacturer and the retailer were losing. P&G was ahead of the pack in realizing the significance of this, though other manufacturers are now also focusing on the end consumer, which is one reason why the industry is seeing so many new CPFR (collaborative planning, forecasting and replenishment) and VMI (vendor-managed inventory) programs. Top managers in P&G began to realize that the company’s supply network needed to be re-engineered so that it was genuinely responsive to consumer demand. This was especially important for promotional items, because of the cost of merchandising and promotional activities,......

Words: 2587 - Pages: 11

Premium Essay

Analyzation of Supply Chain Management Organization Study: Starbucks

...espresso beverages, Frappuccino coffee and non‐coffee blended beverages, smoothies and Tazo teas, Merchandise Coffee and tea brewing equipment, mugs and accessories, packaged goods, music, books and gifts, Fresh Food like Baked pastries, sandwiches, salads, oatmeal, yogurt parfaits and fruit cups and also Consumer Products such as Coffee and Tea, Ready‐to‐Drink (RTD), Starbucks Ice Cream. Ethical Sourcing: Starbuck take a holistic approach to ethically sourcing the highest quality coffee. This includes responsible purchasing practices, supporting farmer loans and forest conservation programs. When buy coffee this way, it helps foster a better future for farmers and a more stable climate for the planet. It also helps create a long term supply of the high‐quality beans we’ve been carefully blending, roasting and packing fresh for more than 40 years. Environmental Stewardship: Starbuck share customers' commitment to the environment and believe in the importance of caring for our planet and encouraging others to do the same. It is they goal that by 2015, 100% of the cups will be reusable or recyclable. Sturbuck will also work to significantly reduce the environmental footprint through energy and water conservation, recycling and green construction. Community Involvement: From the neighborhoods where the stores are located to the one where the coffee is grown. Starbuck believe in fostering thriving communities. Bringing people together, inspiring change and making a......

Words: 8506 - Pages: 35

Premium Essay

Supply Chain Risk Management

...Int. J. Production Economics 133 (2011) 25–34 Contents lists available at ScienceDirect Int. J. Production Economics journal homepage: Identifying risk issues and research advancements in supply chain risk management Ou Tang a,c, S. Nurmaya Musa a,b,n a Department of Management and Engineering, Link¨ping University, SE-581 83 Link¨ping, Sweden o o Department of Engineering Design and Manufacture, University of Malaya, 50603 Kuala Lumpur, Malaysia c School of Economics & Management, Tongji University, Shanghai 200092, PR China b a r t i c l e in fo Available online 3 July 2010 Keywords: Supply chain Risk management Citation/co-citation analysis abstract The purpose of this paper is to investigate the research development in supply chain risk management (SCRM), which has shown an increasing global attention in recent years. Literature survey and citation/ co-citation analysis are used to fulfil the research task. Literature survey has undertaken a thorough search of articles on selected journals relevant to supply chain operations management. Meanwhile, citation/co-citation analysis uses Web of Sciences database to disclose SCRM development between 1995 and 2009. Both the approaches show similar trends of rising publications over the past 15 years. This review has piloted us to identify and classify the potential risk associated with different flows, namely material, cash and information flows. Consequently, we identify some......

Words: 8250 - Pages: 33

Premium Essay

Supply Chain Management

...Ramkhamhaeng University Institute of International Studies BBA (English Programme) MK 403: Logistics & Supply Chain Management Introduction This course is designed to provide an holistic view of logistics and supply chain management, examining the major concepts underlying the subject and many of the strategies, tools and techniques associated with the topic. Its primary focus is based on a number of principles. Creation of superior customer value through logistics, obtaining competitive advantage and cost control, collectively summarised through the CRAVE model of profitability. The course will be structured around the set text, and be supplemented by case studies, exercises and discussions. Emphasis will be placed on the revolution effected through the electronic interchange of information and innovations in transportation and packaging. Course Objectives The broad objectives of the course are to: * To establish a framework of understanding of the subject and the theories and practices underlying it * To illustrate all aspects of logistics and supply chain issues by relevant contemporary examples drawn from a wide variety of local and international companies * To provide an understanding of the value of service and its creation and development within the market, both as an absolute and as a competitive advantage. * To show how an understanding of efficient logistics can add to profitability but requires constant monitoring and flexibility......

Words: 683 - Pages: 3

Premium Essay

Supply Chain Management

...Supply chain management is the vital business function that coordinates all of the network links. Supply-chain management is the management of the activities that procure raw materials, transform them into intermediate goods and final products, and deliver the products to customers through a distribution system these activities are the components of a supply chain. The supply chain function’s role is to help identify the products and services that can best be obtained externally to improve performances to develop, evaluate, and determine the best supplier, price, and delivery for them. The wholesaling and the retailing industries incorporate a logistic focus within their strategic decisions; this is because it will enable them to control the movement of goods from the supplier to end customers without waste. This helps to obtain efficiency of operations through the integration of all material acquisition, movement, and storage activities in the firm which is the objective of logistics. One of Dell’s supply chain management is by using technology to decrease storage and increase efficiency. Meaning, Dell uses their company supply and shipping networks that exemplifies the latest trend in logistics, which is, visibility. Dell makes sure that their inventories can be trace and tracked throughout their entire logistical operations. With solid visibility made possible by technology, the company could query all of its shipments by bill of lading number to figure out which......

Words: 1065 - Pages: 5

Premium Essay

Hrm - Supply Chain Management

...develop more strategic approaches for managing supply chains. These affective factors and realization then led to the development of tradition SCM systems up to the advanced systems companies apply at present. The evolution of supply chain management occurred during the 1990s; at this time, collaboration between manufacturers and suppliers had been established in order to enhance traditional approaches in supply management functions. At the same time, retailers as well as wholesalers had integrated their logistics operations as well so as to achieve greater competitive advantages ( 2002). In the process, both of these concepts were joined and became a strategic approach to what is now known as supply chain management (SCM). In this chapter, the relation of the apparel industry to SCM is explained. Models, implementation needs as well as the dilemma on the application of SCM systems are also discussed through the citation of various related literatures and studies. Relevance of the Supply Chain to the Apparel Industry The apparel industry goes through a number of business challenges. Due to certain trends like fashion and consumer preferences, companies operating in the industry often encounter the issue on demand uncertainty. In order to address this, apparel businesses utilize the concept of product variety. This technique however, would require certain activities such as production systems, forecasting and inventory management. This then emphasizes the need......

Words: 707 - Pages: 3

Free Essay

Case Study 14.1- Supply Chain Management

...Case Questions 1. A decently overseen database may help the healing center accomplish its mission by the following points: * Cost of the each treatment in similar hospital is stored in the database to compare rate with other hospital. * Physicians can gather the relevant information quickly by providing the electronic medical record for each patient. * To find which programs and methods are best, create a historical record of the treatments. * Track the important measure to provide the data and information for example, normal length of patient wait, price for each day for a patient. 3. Hospital should carefully manage some of the cost and risk of using database because in a job market, there is short supply of skills such as database designer and database administrator. Without the specific faculty, it creates a risk to manage the database. The installation and administration expenses include updating software and installing of database and hardware. The translation cost includes the converting cost of older application into database environment. Instead of converting the hospital can choose new system. There is a need for the backup and recovery because the framework expenses are connected with those strategies. A hospital must predict the data administration cost and other activities cost related to data definition, ownership and maintenance. 6. Mountain View Hospital could use web based applications in a few ways. * Internet hospital personnel......

Words: 410 - Pages: 2

Premium Essay

Supply Chain Management

...proper processes designed for supply chain management in any organization. In most firms, supply chain management refers to the ways logistics are handled in the company. Supply chain management is nothing but management of logistics and the process of eliminating general inefficiencies in the company. It refers to the processes of how the different suppliers and the whole network thereof are managed. The overall aim of supply chain management is to produce effective and efficient operations. The value of supply chain management goes up all the even more in retail chain organizations. This is due to the fact that every retail chain organization works with a number of suppliers at any given point in time. All retail firms have to make a conscious effort to integrate the logistics, distribution activities with the suppliers, and the manufacturer’s overall efforts. This study attempts to go through and systematically review the comprehensive processes for supply chain management in any retail chain organization. Also, it tries to undermine how the current technology and innovation techniques can be leveraged to improve the supply chain management processes and to make them more consumer-centric and efficient. This study has used the example of Wal-Mart, the leading global retail giant. This is a perfect example used to illustrate how supply chain management processes should be handled in large retail set ups as Wal-Mart would be handling materials and supplies from hundreds of......

Words: 9986 - Pages: 40

Premium Essay

Green Supply Chain Management

...Green Supply Chain Management and Its Effects on Environmental and Operational Performance in Automobile Industry in Karachi Syeda Unaiza 7153, Talha Hamid 6307, Abdul Qadeer 6758,Hassan Sajid 6303 December 18, 2015 1 Contents 1 Introduction 1.1 Background of Study . . . . . . . . . . . . 1.2 Problem Statement: . . . . . . . . . . . . . 1.3 Objectives of Study . . . . . . . . . . . . . 1.4 Research Questions . . . . . . . . . . . . . 1.5 Significance of study . . . . . . . . . . . . 1.6 Limitations and Delimitations of the Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 5 6 7 7 7 8 2 Review of the Related Literature 9 3 Research Methodology 3.1 Respondent Sample and Methods 3.2 Semi structured interview . . . . 3.3 Self-completion questionnaires . . 3.4 Focus group/group interview . . . 3.5 Triangulation . . . . . . . . . . . 20 20 21 22 23 23 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 2 1 Introduction Supply Chain Management is the process of managing and controlling of a compound network......

Words: 5854 - Pages: 24

Premium Essay

Supply Chain Management Assignment

...Supply Chain Management Assignment- 3 Note: a) Copy from internet or any other sources will be dealt severely. However students can take any kind of ideas or information, in that case it is to be acknowledged. Students are expected to do thorough study on the following concepts and write you views as per the given format, in details. Logistics is essential in both manufacturing and service sectors. The service sectors includes government, hospitals, banks retailers etc. logistics basically takes care of time and place utilities. Basically, it helps companies gain competitive advantage. Supply chain management is the process to examine everything from needs identification through the actual use and disposal of purchased materials and services while maximizing the value of ‘Rupees’ spent. SCM is the management of all key business processes across members of supply chain. The primary objective of any supply chain is “CYCLE TIME REDUCTION”. The main objective of this assignment is to provide a platform of understanding the supply chain and the business strategies to interact with various agencies those who are involve in distribution and Supply Chain Management. The topic for the assignment: “Comparative study of Distribution & Supply Chain Management in manufacturing as well as service sectors” Expectations from the students (for evaluation) Your assignments are to be in the following format: 1. Give sufficient information in details......

Words: 356 - Pages: 2

Premium Essay

Supply Chain Management Study Guide

...quality”product development process & consumer –concept dev. Planning, design and dev, commercial preparation, launch development funnel, sequential, concurrent – a process in which the product or service idea must clear specific hurdles before it can go on to the next dev development phase – 3rd phase here the company starts to invest heavily in the development effort and builds and evaluates prototypes line balancing – technique used in developing product-based layouts, as would be found in a production line or group technology produced in large enough volumes to justify keeping a finished goods inventory. assemble to order – products that are customized only at the very end of the manufacturing process. customization within the supply chain product layout – a type of layout where resources are arranged sequentially according to the steps required to make a product. cellular and functional layouts – a type of layout where resources are physically grouped by fuction. Cellular is used in group technology settings; resources are physically arranged according to the dominant flow of activities for the product life. batch process, job shop, assembly line, FMS – manufacturing process where items are moved through the different manufacturing steps in groups or batches. Job shop is process used to make a wide variety of highly customized products in quantities as small as one and are characterized by general purpose equip and workers who are broadly skilled.......

Words: 1038 - Pages: 5

Premium Essay

Reverse Supply Chain Management

...Reverse Supply Chain Management -explore the feasibility to incorporate forward supply chain strategy into the reverse supply chain in the electronic industry Yin Wei Graduate School Master of Science in Logistics and Transport Management Master Degree Project No. 2011:72 Supervisor: Ove Krafft ACKNOWLEDGEMENT I would like to express my enormous gratitude and appreciation to all those who supported me and contributed to complete this thesis successfully throughout the entire research process. My special thanks go to the Logistics and Transport Research Group within Graduate School, the University of Gothenburg, for giving me the great opportunity to commence this thesis in the first instance. I am also thankful to my supervisor Ove Krafft, whose stimulating suggestions, guidance and encouragement helped me all the time in the research and writing process of this thesis. Special appreciation is further devoted to all the respondents in the interviews, for their openness and patience in taking time to answer the questions and providing me with relevant and essential information for my study. Without their contribution, it would have been inconceivable to make this thesis a success. Particular appreciation goes to Suning Appliance. In additional I am also grateful to my classmates in Master Programme of Science in Logistics and Transport Management, especially those who opposed on my work and posed their constructive suggestions for further improvements of this......

Words: 23091 - Pages: 93