Supply Chain Management and Its Ideas

What is Supply Chain Management?

Supply Chain Management involves managing and directing facets of the "supply chain". A supply chain is a network of interrelated businesses .Each business gives one side of the chain from production to the obtaining of raw materials to the transportation of resources to the manufacturing process to the end user market to the final act of consumption. The final goal of supply chain management is to make this chain run effectively and efficiently when reducing costs and carrying customer satisfaction.

Ideas of Supply Chain Management

The theory of Supply Chain Management is depends on two main idea. The first idea is that basically each and every goods that reaches, the customer represents growing attempts of many organizations. These organizations are known together as the supply chain. The second idea is that when supply chains have existed for a lengthy time, the majority of the organizations have given concentration toward what was happening inside their “four walls.” A small number of businesses understood the total chain of actions that eventually distributed goods to the consumers. The consequence was disorganized and ineffective supply chains.

Supply chain management is the management of supply chain actions to develop value of customer and attain retain-able competitive advantage. It stand for a conscious attempts by the firms to expand and run supply chains in the most effective and competent ways possible. From product development, production, and logistics to the information systems which needed to synchronize these activities supply chain activities cover everything.

Through physical flows and information flows an organizations that framework the supply chain are linked. Physical flows related with the transformation, progress, and storage of goods and resources. They are the largest visible portion of the supply chain. On the other hand, Information flows permit different supply chain followers to synchronize their long-term plans and to direct the daily flow of goods and component up and down the supply chain.

Supply chain management (SCM) is the sets of art and science that goes into improving the systems one company gets the raw elements it desires to create a product or service and send it to customer. Five basic components of SCM are the followings:

1. Plan: 

Plan is the strategic segment of SCM. For managing all the resources companies need strategies that go near to meet customer requirement for their product or service. SCM planning is developing to monitor the supply chain so that it is efficient, less costly and bring high quality and value to its customers.

2. Source: 

To deliver the goods and services companies must choose suppliers, they need to make their product. As a result, supply chain managers must expand a set of pricing, delivery and compensation processes with suppliers and generate metrics for observing and improving relationships.

3. Make:

It is the manufacturing step. Supply chain managers plan the activities required for production, checking, packaging and for preparation of delivery. This is the most metric-intensive portion where companies are capable to determine quality levels, output of production and productivity of the worker.

4. Deliver: 

This is the part that many SCM insiders refer to as logistics, when companies coordinate the reception of orders from their customers, build up a network of warehouses, set up an invoicing structure to collect payments.

5. Return: 

This can be considered as the problematic part of the supply chain for many companies. Supply chain planners have to form a reactive and flexible network for obtaining defective and excess products back from their customers and supporting customers who have problems regarding delivery.

In SCM the responsibilities of Supply chain manager jobs are very important .Planning the delivery schedule, supervision the ordering and packaging methods, monitor and ensure the stock levels, make sure that the product has been arrived at the destination all will be considered as the supply chain management jobs.

Supply Chain Management Degree and its types? 

Supply chain management degree is a type of post-secondary degree which honored to the students who have accomplished a college, university or business school program that only focuses on the management of supply chain activities. Three basic types of supply chain management degrees that can be earned from a college, university, or business school are the followings:

• Bachelor's Degree in Supply Chain Management: Most bachelors’ programs take around four years to complete. It exclusively on logistics and supply chain management

• Master's Degree in Supply Chain Management: Master's programs take two years to complete; accelerated programs can usually be completed in less time.

• Doctorate Degree in Supply Chain Management : A doctorate program requires concentrated study and research in supply chain management. These programs generally take three to five years to complete, though program length can fluctuate.