Supply Chain Management and Logistics Insight

Supply Chain Management and Logistics Insight

Supply chain management and logistics is the lifeline of any business. This kind of management has become very popular in society because of its sound relevance. Before looking at the processes therein, it is critical to know what a supply chain is and how it affects the business. When a company buys raw materials from suppliers to create a product that will be sold, this is considered a supply chain. The major difference between different chains is that some are very simple and straight forward while others are complex and intricate.

Therefore, supply chain management and logistics are the processes that see the production of a product until it reaches the consumer. Business experts realized that it is in this process that proper management can be realized. In turn, cost effective methods to run the chain can be achieved. There are various stages that will constitute this chain as follows. These elements make up the supply channel or chain. The first element is the consumer or the market. Their role is very critical. When a consumer has the need for a particular product, they will go to the market to order their desired product. The sales department of a company will be responsible to sell the product to the consumer.

In this light, if the sales department does not have the product already manufactured, they will place an order to the production department. This is geared to produce the ideal product that the consumer needs. Planning of the production is another element in the chain. This will provide proper coordination to ensure that the goods produced meet the client’s specifications. Because raw materials are needed to create the product, the purchasing department will have a role to play. They will make purchase orders to relevant suppliers. After the raw materials are acquired, they can be stored in warehouses and inventory management will come to play in this regard.

The suppliers will send invoices to the company for having delivered raw materials. Supply chain management and logistics is centred on these vital processes. The next step will be to produce the product. When the goods or final products are ready, they can be stored until they are delivered to the consumer. Transportation is another element that will deliver the final product. The above chain description is necessary for companies. Apart from ensuring a smooth flow of activity, this management and logistics check is geared to helping cut production costs. Consequently, many companies have been able to bring on board cutting edge technology to make sure that the chain is optimized.

For example, the Internet and web based applications have enabled real time communication and feedback processing. The supply chain can now be managed in a more superior way. Companies with complex and intricate supply chains cannot survive without proper follow up and planning. For this reason, this management has automated processes to ensure that businesses are performing as they should. Another benefit is that companies are able to employ tactical solutions that will improve the overall performance. It is also a method to check flaws and make changes accordingly. In personal life or in business, this is a method to manage different aspects of life. The result is saving time, costs and increasing productivity.

supply chain management careers

For careers in supply chain management click here. Visitors and consultants from overseas working in the supply distribution & sourcing space are often required to have visitor health insurance to protect against the cost of accidents and illnesses abroad – click here for details.

There’s lots of further information about supply chain management on the website of Supply Chain Management Review.

Definitions – SCM & LM

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.

Boundaries and Relationships: Supply chain management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance, and information technology.

What is a supply chain?

The supply chain — a term now commonly used internationally — encompasses every effort involved in producing and delivering a final product or service, from the supplier’s supplier to the customer’s customer . Supply chain management includes managing supply and demand, sourcing raw materials and parts, manufacturing and assembly, warehousing and inventory tracking, order entry and order management, distribution across all channels, and delivery to the customer.

Due to its wide scope, supply chain management must address complex interdependencies; in effect creating an “extended enterprise” that reaches far beyond the factory door. Today, material and service suppliers, channel supply partners (wholesalers / distributors, retailers), and customers themselves, as well as supply chain management consultants, software product suppliers and system developers, are all key players in supply-chain management.

What is logistics?

Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers’ requirements.

Boundaries and Relationships: Logistics management activities typically include inbound and outbound transportation management, fleet management, warehousing, materials handling, order fulfillment, logistics network design, inventory management, supply/demand planning, and management of third-party logistics services providers. To varying degrees, the logistics function also includes sourcing and procurement, production planning and scheduling, packaging and assembly, and customer service. It is involved in all levels of planning and execution–strategic, operational and tactical. Logistics management is an integrating function, which coordinates and optimizes all logistics activities, as well as integrates logistics activities with other functions including marketing, sales manufacturing, finance, and information technology.

Source: careersinsupplychain.org

Online MBA in Supply Chain Management

An online MBA in supply chain management is a challenging two-year program that teaches students about the inner workings of properly managing company inventory. Students will learn about the process of moving and storing raw materials from the purchasing, production and delivery stages. They’ll also be trained in supply chain management practices and business principles. A major focus of the MBA online supply chain management program is inventory cost reduction. This is especially important in the supply chain because managers need to be able to control inventory costs while eliminating waste. Students will walk away with the best knowledge and skills needed to manage a supply chain and the individuals who work in it, as well as lead project teams and negotiate with important players within the chain. With these skills and professional training, students will be equipped to work in a variety of supply and production careers. Online MBA supply chain management programs are extremely convenient for the average student and working professional who need to juggle both work and school demands.

What Does an MBA in Supply Chain Management Cover?
An MBA in supply chain management is a business degree concentration that teaches students how to oversee the production of raw materials into consumer products. Online supply chain management MBA schools give students the option of completing a full or part-time program within one to two years or longer. Depending on the online MBA supply chain management program, some students may only have to complete 36 to 48 hours to earn their degree. An MBA supply chain management online program will provide general MBA coursework and specialized courses that are specific to supply chain management. During the program, students will closely study the supply chain process of purchasing, production and distribution of goods from supplier to consumer. They will also learn about the professional roles that contribute to supply chain activities. At the end of the program, students will know how to plan every step in the chain of activities such as sourcing, procurement, conversion, logistics management and marketing. Much of the program also focuses on managing company inventory in order to achieve optimal success. Students will learn how to control and reduce inventory costs while eliminating waste during the production process. At the end of the program, they’ll possess important analytical and negotiating skills that will come in handy in both professional and everyday life.

Getting Into a Supply Chain Management MBA Program
Those who are interested in pursuing a supply chain management MBA program should first complete a bachelor’s degree program and earn their undergraduate degree from an accredited school. A business bachelor’s degree is not necessary because those with a bachelor’s degree in art, science, or humanities are all eligible for admittance into an operations management MBA program. However, students who did not pursue a business-related undergraduate degree should make sure that they have mastered basic business and mathematical skills before applying so that they can get an idea of what to expect during their MBA studies. Those who did not earn a bachelor’s degree in business may be asked to complete several courses before submitting an application, including:

  • College Algebra
  • Foundations of Business
  • Business Law & Ethics

A minimum undergraduate grade point average of 3.0 is typically necessary for entry into operations management MBA programs as well, such as the case with Northeastern University. Some schools, including Northeastern, require additional documents aside from an official transcript and completed application form. These forms consist of letters of recommendation, an application essay, GMAT scores, and an updated professional resume. However, because all schools have varying guidelines, applicants should check directly with their prospective schools to ensure what they do and do not need to submit.

For more information, please visit: phoenix.edu

Supply Chain Management

1.
Product Details
Essentials of Supply Chain Management, Third Edition by Michael H. Hugos (Jul 26, 2011)
2.
Product Details
Supply Chain Management (4th Edition) by Sunil Chopra and Peter Meindl (Aug 3, 2009)
3.
Product Details
Supply Chain Management: A Logistics Perspective (with Student CD-ROM) by John J. Coyle, C. John Langley, Brian Gibson and Robert A. Novack (Mar 6, 2008)
4.
Product Details
Lean Six Sigma for Supply Chain Management by James William Martin (Oct 12, 2006)
5.
Product Details
Essentials of Supply Chain Management, 2nd Edition by Michael H. Hugos (Mar 10, 2006)
For more information, please visit: Amazon

Efficient Consumer Response (organisation)

Efficient Consumer Response (ECR) is a joint trade and industry body working towards making the grocery sector as a whole more responsive to consumer demand  and promote the removal of unnecessary costs from the supply chain.

The ECR movement beginning in the mid-nineties was characterized by the emergence of new principles of collaborative management along the supply chain. It was understood that companies can serve consumers better, faster and at less cost by working together with trading partners. The dramatic advances in information technology, growing competition, global business structures and consumer demand focused on better choice, service convenience, quality, freshness and safety, made it apparent that a fundamental reconsideration of the most effective way of delivering the right products to consumers at the right price was much needed. Non-standardized operational practices and the rigid separation of the traditional roles of manufacturer and retailer threatened to block the supply chain unnecessarily and failed to exploit the synergies that came from powerful new information technologies and planning tools. In other words, ECR allows companies to seek a competitive advantage by demonstrating their superior ability in working together with trading partners to add value to the consumer.

There are four focus areas under ECR: Demand management, Supply management, Enablers and Integrators, which are intended to be addressed as an integrated set. These form the basis of the ECR Global Scorecard.
To better serve the consumer, ECR has set out to invert the traditional model and break down non-productive barriers. The impacts have been extensive and continue to resonate across industry.

Courtesy: Wikipedia