Supply Chain Management

1. Supply Chain Management
• Definitions.
• Applications.
• Benefits.
• Difficulties.

2. Definitions
• Supply chain management (SCM) is the management of a
network of interconnected businesses involved in the ultimate
provision of product and service packages required by end
customers (Harland, 1996)

3. The Supply Chain
Suppliers Manufacturers Warehouses & Customers
Distribution Centers
Transportation Transportation
Costs Costs
Material Costs Transportation
Manufacturing Costs Inventory Costs Costs

4. Supply Chain Management
Plan Source Make Deliver Buy
Suppliers Manufacturers Warehouses & Customers
Distribution Centers
Transportation Transportation
Material Costs Costs Costs Transportation
Manufacturing Costs Inventory Costs Costs
4

5. Applications
• Monitor the circulation of products and
services from suppliers to customers.
• Manage the requirements, warehouse,
transportation, circulation …
• The basic functions of SCM include supply
chain optimization, event management,
inventory management. SCM also include the
management of international trade, the
relationship between suppliers.

6. Benefits
• Improving the performance of product.
• Improving customer service and reducing
inventory.
• Reduce unnecessary costs for businesses.
• Reduce cost price of product, and improve
profit.

7. Difficulties
• Change process of business, change habit of
staffs.
• Change process of suppliers.
• Experience of end user.
• Error, weather, traffic…