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Supply Chain Management

Supply chain management involves coordinating a series of interconnected activities related to transforming raw materials into finished goods and delivering them to end users. It requires the efforts of multiple organizations working together. Logistics management is one part of supply chain management and is responsible for planning efficient transportation of goods from their origin to the point of consumption. Both aim to match supply and demand in a cost-effective manner but supply chain management coordinates broader supply chain activities while logistics focuses specifically on transportation and distribution.

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Macy Andrade
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36 views

Supply Chain Management

Supply chain management involves coordinating a series of interconnected activities related to transforming raw materials into finished goods and delivering them to end users. It requires the efforts of multiple organizations working together. Logistics management is one part of supply chain management and is responsible for planning efficient transportation of goods from their origin to the point of consumption. Both aim to match supply and demand in a cost-effective manner but supply chain management coordinates broader supply chain activities while logistics focuses specifically on transportation and distribution.

Uploaded by

Macy Andrade
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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SUPPLY CHAIN

MANAGEMENT
SUPPLY CHAIN
MANAGEMENT
is a series of interconnected activities related
to the transformation and movement of raw
material to the finished goods till it reaches
to the end user. It is the outcome of the
efforts of multiple organizations that helped
in making this chain of activities successful.

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*PowerPoint SmartArt graphic

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LOGISTICS MANAGEMENT

is one part of supply


chainmanagement and
responsible for planning and
implementing efficient systems
to get goods from the point of
origin (e.g. factory) to the point
of consumption (e.g. store,
customer's home).
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SUPPLY CHAIN MANAGEMENT
VS
LOGISTICS MANAGEMENT
SUPPLY CHAIN LOGISTICS
MANAGEMENT MANAGEMENT
✓ The coordination and ✓ The process of integrating the
management of the supply movement and maintenance
chain activities are known as of goods in and out the
Supply Chain Management. organization is Logistics.
✓ Customer Satisfaction ✓ Competitive Advantage
✓ Logistics Management is a ✓ Supply Chain Management is
fraction of Supply Chain the new version of Logistics
Management. Management.
Supply Chain Management FURTHER DISCUSSED

Supply Chain Management is


the design and management of processes
across organizational boundaries
with the goal of matching supply and demand
in the most cost effective way.

Supply Demand
Importance of Supply Chain
Management

BOOST CUSTOMER SERVICE


✓ Customers expect the correct product
assortment and quantity to be delivered.
✓ Customers expect products to be available at
the right location.
✓ Right Delivery Time
✓ Right After Sale Support
Importance of Supply Chain
Management

Reduce Operating Costs


✓ Decreases Purchasing Cost

✓ Decreases Production Cost

✓ Decreases Total Supply Chain Cost


Importance of Supply Chain
Management

Reduce Operating Costs


✓ Increases Profit Leverage

✓ Decreases Fixed Assets

✓ Increases Cash Flow


Societal Roles of SCM

Ensure Human Survival


✓ SCM Helps Sustains Human Life

✓ SCM Improves Human Healthcare

✓ SCM Protects Humans from Climate


Extremes
SCM Processes
✓ Planning – the plan process seeks to create effective long- and short-range
supply chain strategies. From the design of the supply chain network to the
prediction of customer demand, supply chain leaders need to develop
integrated supply chain strategies.
✓ Procurement – the buy process focuses on the purchase of required raw
materials, components, and goods. As a consumer, you're pretty familiar with
buying stuff!
✓ Production – the make process involves the manufacture, conversion, or
assembly of materials into finished goods or parts for other products. Supply
chain managers provide production support and ensure that key materials are
available when needed.
✓ Distribution – the move process manages the logistical flow of goods across
the supply chain. Transportation companies, third party logistics firms, and
others ensure that goods are flowing quickly and safely toward the point of
demand.
✓ Customer Interface – the demand process revolves around all the issues that
are related to planning customer interactions, satisfying their needs, and
fulfilling orders perfectly.
SCM involves a series of key
activities and processes that
must be completed in an
efficient and timely manner.
Otherwise, product will not be
available when needed by
consumers like you.

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