Supply Chain Management Introduction

1. SUPPLY CHAIN
MANAGEMENT
PREPARED BY: MFO

5. What is Supply Chain Management?
◦Supply chain management encompasses the planning and
management of all activities involved in sourcing and
procurement, conversion, and all logistics management activities.
Importantly, it also includes coordination and collaboration with
channel partners, which can be suppliers, intermediaries, third
party service providers, and customers. In essence, supply chain
management integrates supply and demand management within
and across companies.

6. What is a Supply Chain?
◦Two or more parties linked by a flow of resources –
typically material, information, and money – that
ultimately fulfill a customer request. The primary
purpose of a Supply Chain is to satisfy customer
needs.

7. What is Supply Chain Management?
◦“Supply Chain Management deals with the
management of materials, information, and financial
flows in a network consisting of suppliers,
manufacturers, distributors, and customers.“
Stanford Supply Chain Forum

11. Supply Chain Management
◦‘Supply Chain Management’ can be defined as the active
management of supply chain activities to maximize customer
value and achieve a sustainable competitive advantage. It
represents a conscious effort by the supply chain firms to develop
and run supply chains in the most effective and efficient ways
possible. There can be various types of supply chains. There is a
basic supply chain, and an extended supply chain.

12. Basic supply chain
◦The definition of a basic supply chain is: a set of three or
more companies directly linked by one or more of the
upstream or downstream flows of products, services,
finances and information from a source to a customer.

16. Extended supply chain
◦An extended supply chain includes suppliers of the
immediate supplier and customers of the immediate
customer, all linked by one or more of the upstream and
downstream flows of products, services, finances, and
information.