Supply chain management involves coordinating business activities like production, procurement, and logistics to maximize customer value at minimum cost. It aims to integrate key processes across the supply chain. SCM definitions emphasize providing the highest customer satisfaction at lowest cost through material and information flow management. It encompasses planning and managing all sourcing, procurement, conversion, collaboration and logistics activities. E-procurement uses internet technologies to facilitate B2B, B2C and B2G purchasing. Benefits of SCM include improved networks, lower costs, better collaboration and increased revenue.

1. Supply Chain Management

2. • It plays an important role in keeping eye on production,
Cost,
delivery
• Increases overall efficiency
• Supply chain sometimes also called value chain.

3. 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 ”

4. • Council of SCM Professionals (CSCMP)
It encompasses the planning and management of all activities involved
in
sourcing,
procurement,
conversion,
collaboration
and logistic managements
E-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.

6. • 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.

7. - 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 :

8. • Tools for SCM :
– Includes modules used to execute
• Supply chain transaction
• Supplier relationship
• Control associated business process

9. Key elements of SCM
1. Production
2. Supply
3. Inventory
4. Location
5. Transportation
6. Information

10. Benefits of SCM :
• Improves network
• Lower costs
• Improved collaboration
• Study of cycle time
• Proper response of conflicts
• Increase revenue
• Retain customers
• Minimized delays

11. Trends in SCM :
1. Demand Planning
2. Globalization
3. Increased competition and price pressures
4. Outsourcing
5. Shortened and more complex product life cycle
6. Closer integration and collaboration