1. Supply chain management
Summary
The objective of Supply Chain Management is to match supply to demand in the most
competent manner. Corporations allocated huge amount of funds to efficiently
administer a supply chain. The resources are as follows:
1: Product and service flow
2: Information flow
3: Financial flow- refers to terms, payments, credits, ownership rights between
suppliers, manufacturers, retailers, and customers.
Firm’s strategically essential part is considered to be a supply chain and used in most of
the firms. Significant percentage for supply chain is eradicated from the sales of goods
and services and this is providing ample of prospects for cost reduction and can enlarge
contribution margins. From this chapter you can reach framework of new strategies
regarding supply chain of products and its characteristics to perk up competence and
decrease costs. According to Heizer and Render, “supply-chain management are the
activities that procure materials and services, transforming them into intermediate goods
and final products and delivering the products through a distribution system.” ((Heizer
and Render, 336)
For an effective supply chain achievement, we must accomplish the following:
1. Trust – trading partners required a base of Trust, confidence, and similar goal.
2. Information velocity (the speed at which information is communicated in a supply
chain) – the quicker, the better.
3. Effective Communication – consistent and standard form of communication among
partners.

2. 4. Supply chain visibility – data sharing among partners.
5. Event management – our capability – examining, notifying, reproducing, measuring
events which are unplanned.
6. Performance metrics – assuring expected SCM system is functioning or not and
identified problems are being managed or not. Check and balance of demands
generated and deliverables.
7. Strategic sourcing – scrutinizing the procurement process to lower costs by reducing
waste and non-value-added activities, increase profits, reduce risks, and improve
supplier performance.
Two key features that are essential for suppliers are timely deliveries and lofty products
quality. An organization depends upon the supplier's operations meeting business
needs, and most importantly, consumer needs. Every organization has got to inspect
the status, past experience, price, and quality prior to choose and purchase from a
supplier. After selection, intervallic audits must be made to investigate performance and
production potential. A trained supplier has met or exceeds the demand of a buyer,
which can be dangerous while ascertaining long-term relationships among them.
Upholding good relationships with suppliers is progressively more recognized as a
significant aspect in sustaining a competitive edge.