Stanford supply chain forum call it distribution or logistics or supply chain management. Supply chain and logistics terms and glossary updated. Often times scm can be confused with the term logistics management. Over the last three decades, the concept and theory of business management have. The business case for supply chain sustainability for a particular company depends on a variety of issues including industry sector, region of operation, stakeholder expectations, business strategy, organizational culture, and past performance. Supply chain management in public sector procurement. The concepts breadth often leaves ample space for disagreement about supply chains role within a business. Preparing for supply chain disruptions business queensland. Glossary of retail supply chain terms term acronym definition advance ship notice asn used to notify a customer of a shipment in advance of arrival. Logistics and supply chain management are some terms that are prevalent and have been used in the modern world of business and other areas that involve several activities, which include military operations among others. Finally, cost is not the only element of a supply chains performance, as well discuss later. A wellorganized supply chain management system involves optimizing operations functionality to be fast and efficient.
By whatever name it is the sinuous, gritty, and cumbersome process by. Supply chain management scm is the active streamlining of a business supplyside activities to maximize customer value and gain a competitive advantage in the. A more detailed definition of esupply chain management can be found in the description of norris et al. The term supply chain management arose in the late 1980s and came into widespread use in the 1990s. A new introduction to supply chains and supply chain management. Supply chain analytics for perishable products, springer 20 slides from principles of supply chain management. Cscmp supply chain management definitions and glossary.
Supply chain business solutions apics for business. Entire network of entities, directly or indirectly interlinked and interdependent in serving the same consumer or customer. Supply chain management software includes tools or modules used to execute supply chain transactions, manage supplier relationships and control associated business processes. Supply chain risks may have a significant impact on a companys current and future profitability and the environmental and social welfare of communities in their sphere of operations. Similarly, the downstream end of the chain might consist of distributors, multiple customers, etc, and will involve batches of goods being shipped at different times to different places. Fundamentals of supply chain management kenyatta university. It comprises of vendors that supply raw material, producers who convert the material into products, warehouses that store, distribution centers that deliver to the retailers, and retailers who bring the. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. A supply chain is the alignment of firms that bring products. The a3 system is a means of describing a business process in a compact form. Companies develop supply chains so they can reduce their costs and remain competitive in the business landscape.
Inventory management is a business process which is responsible for managing, storing, moving, sorting, arranging, counting and maintaining the inventory i. This is a brief introductory tutorial that explains the methodologies applied in the rapidly. Inventory management makes sure that the core processes of a business keep running efficiently by. It was originally created by the toyota motor corporation and was named for the paper size on which it was printed. In business and finance, supply chain is a system of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer. Supply chain event management abbreviated as scem is a consideration of all possible events and factors that can. Cscmp and the board of directors, comprised of industry experts, created official definitions for the following terms. Supply chain management is the integration of key business processes from end user through.
Supply chain definition and meaning collins english. Moreover, based on romanian literature as reference, we. At best, supply chain strategy can be the enabler of the business strategy. As the consequence of globalization, crossnational businesses pay different tax rates in different countries. You should undertake a business impact analysis to prepare your business to address the impacts of supply chain disruption a business impact analysis identifies your key business processes, and the activities and resources you need to operate your business. The concept of supply chain transparency was virtually unknown 15 years ago, yet today it commands the attention of mid and seniorlevel managers. Business processes that could be integrated in the supply chain. Supply chain management can be defined as the management of flow of products. Using a broad definition it can include all of the following. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end. This paper presents a method to capture and express a firm. Supply chain planning, at the tactical level, occurs regularly but is not a daily task. Knowing the level of environmental, social, and economic impact and viability of your vendors and customers is becoming increasingly common as all industries move towards a more sustainable future.
Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. Inventory management ensures that the right inventory is available as per the demand at low costs. Supply chain management is an indispensable part of a business s sustainability program. Government pressures are unlikely to be the driver of. Supply chain information which has been derived only from the supply chain entity immediately ahead a direct customer of a supply chain member, may lead to the bullwhipeffect. Other dimensions must be considered and balanced when designing the supply chain, including. Asns may be paperbased, however, electronic notification is preferred. Prior to that time,businesses used terms such as logistics and operations management instead. What is supply chain management, and why is it important. Glorious sun school of business and management, donghua university. For example there are such links in the supply chain as logistics,distribution,materials management, inventory control and freight in addition to the procurement function. Documentation, such as suppliers manual, could be a great building block. Most organizations are short term in nature and plan along a timeline of one quarter to one year. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes.
Supply chain defined as set of entities involved directly in the upstream and downstream of products, services, finances and information from source to customer mentzer et al. Cooper 2000 issues in supply chain management, industrial marketing. Supply chain management i about the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser. An electronic supply chain has a new set of pros and cons, different from those in traditional scm. It takes the concept of electronic business ebusiness and marries that with supply chain management scm.
As money, materials, and information are passed between customers and suppliers, supply chain management keeps them flowing up and down a supply chain. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. Supply chain meaning in the cambridge english dictionary. It takes the concept of electronic business e business and marries that with supply chain management scm. Explaining supply chains to people outside the field may be one of the toughest, yet most frequent challenges faced by industry professionals. Supply chain management managing complex and dynamic supply and. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the customer.
The concept of supply chain transparency was virtually unknown 15 years ago, yet today it commands the attention of mid and seniorlevel managers across a broad spectrum of companies and industries. Supply chain and logistics terms and glossary updated february, 2010. Rvcf glossary of retail supply chain terms term acronym. Taxefficient supplychain management is a business model that considers the effect of tax in the design and implementation of supplychain management. Measuring the business value of logistics in the supply chain and supply chain management. Customer service 1 the right product is at the right place at the right time. Aug 20, 2019 the concept of supply chain transparency was virtually unknown 15 years ago, yet today it commands the attention of mid and seniorlevel managers across a broad spectrum of companies and industries. The business case for supply chain sustainability for a particular company depends on a variety of issues including industry sector, region of operation, stakeholder expectations, business strategy, organizational culture, and past. The standard definitions for techniques of supply chain finance set out in this document builds upon several excellent initiatives and documents aiming to develop terminology related to this fastgrowing, highvalue but still fairly nascent form of financing, which applies equally in support of domestic and international supply chains.
Defining supply chain management mentzer 2001 journal. Reducing the costs of a supply chain carry inherent risks of. Reducing the costs of a supply chain carry inherent risks of reduced quality and unreliable shipping. Jun, 2019 electronic supply chain management is the method of managing a supply chain online. Supply chain strategy is seldom stated explicitly, making it difficult to discuss a firm. Some definitions of a supply chain are offered below. Supply chain strategies 111 supply chain planning encompasses a comprehensive perspective of business operations suppliers supplier supply chain strategy and network design regional and global collaboration organisational design crossenterprise supplydemand planning supply chain performance measurement. Risk management is a key driving force to creating a supply chain.
Glasersegura, phd slides from introduction to supply chain management, by david. We recommend the definition of supply chain management developed and used by the global supply chain forum. Asns will often include po numbers, sku numbers, lot numbers, quantity, pallet or container numbers andor carton numbers. Supply chain leadership distinctive approaches to innovation, collaboration, and talent alignment 1 imagine youre the leader of a global business maybe you are and an exciting new opportunity arises perhaps a new market opens up just as your product development team. Investors need an understanding of the business risks caused by supply chain. Electronic supply chain management is the method of managing a supply chain online. Logistics operations have alw ays been accompanying life in. Supply chain management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying. Logistics origin, sources and periods of development.
Later in the 1980s, the term supplychain management scm was developed to align the customer need into the key business processes, starting from end user till oem. Supply change management is a highlydetailed system used by small and large organizations alike to get products to consumers, from obtaining raw materials, manufacturing and delivering the final product to the customer. Supply chain management is the integration of key business processes from end user through original suppliers that provides. Customer relationship management specifying service. With the supply chain covering a broad range of disciplines, the definition of what is a supply chain can be unclear. The overall purpose is to develop plans that it here to supply chain strategy well achieving maximum benefit from supply chain resources.
In the future,there will be new aspects to supply chain management that become commonplace. Understand how your supply chain organization, distribution center or manufacturing site measure against competitors to close performance gaps. In commerce, supply chain management scm, the management of the flow of goods and services, involves the movement and storage of raw materials, of workinprocess inventory, and of finished goods from point of origin to point of consumption. Supply chain strategy is not simply a linear derivative of the business strategy. Keebler has over 25 years of practitioner experience in manufacturing, marketing, and logistics management across several industries. Supply chain management involves five main functions. The best way to manage a supply chain disruption is to prepare for it. Scor is the worlds leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. Pdf defining the concept of supply chain management and its. The business impact analysis allows you to measure how supply chain disruptions may affect business activities, including financial management.
Pdf defining the concept of supply chain management and. For example, if vital machinery breaks down and disrupts production, the impacts on various business activities could include. Apparently, it has become difficult for people to indicate whether one is practicing logistical management or supply chain management leading some professionals even to use the. Understanding your value chain, and how china fits into it, can lead to tremendous tax savings. Supply chain definition and meaning collins english dictionary.
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