• It plays an important role in keeping eye on production, Cost, delivery• Increases overall efficiency• Supply chain sometimes also called value chain.
Some definitions of SCM :• “ It is the management of the flow of material and information so that highest level of customer satisfaction can be provided at lowest level of cost ”• “ It is systemic and strategic co-ordination of traditional business and tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance “• “ It is integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders ”
• Council of SCM Professionals (CSCMP) It encompasses the planning and management of all activities involved in sourcing, procurement, conversion, collaboration and logistic managementsE-procurement : It is B2B or B2C or B2G purchase and sale of supplies, work and services through the internet as well as other information and networking systems, such as EDI and ERP.
• Seven main types of E-procurement : - Web based ERP : Creating and approving purchasing, requisitions, placing purchase orders and receiving goods and services by using software systems. - E-MRO (Maintenance, Repair, and Overhaul) Its non-product but related to maintenance. - E-sourcing : Identifies new suppliers for a specific category of purchasing requirements using IT.
- E-tendering : Sending requests for information and prices to suppliers and receiving the responses of suppliers using IT.- E-reverse auctioning : Using IT to buy goods and services from a number of known or unknown suppliers.- E-informing : Gathering and distributing purchasing information both from internal and external parties using IT.- E-marketing sites :
• Tools for SCM : – Includes modules used to execute • Supply chain transaction • Supplier relationship • Control associated business process
Key elements of SCM1. Production2. Supply3. Inventory4. Location5. Transportation6. Information
Benefits of SCM :• Improves network• Lower costs• Improved collaboration• Study of cycle time• Proper response of conflicts• Increase revenue• Retain customers• Minimized delays
Trends in SCM :1. Demand Planning2. Globalization3. Increased competition and price pressures4. Outsourcing5. Shortened and more complex product life cycle6. Closer integration and collaboration