Supply chain management is a very broad term, often easily be misunderstood, in many different opinions, yet no complete explanation of. In order to show that SCM is and what is not, the following will clarify some of the most common misconceptionsToday, businesses are facing is no longer a simple supply and demand market, but a new technology continues to emerge, the market rapidly changing competitive environment, manufacturers and its customers, suppliers are also becoming more and more the relationship between the important. A good supply chain management to shorten product delivery time and reducing overall procurement costs for the company and add more value to customers.
Today, businesses are facing is no longer a simple supply and demand market, but a new technology continues to emerge, the market rapidly changing competitive environment, manufacturers and its customers, suppliers are also becoming more and more the relationship between the important. A good supply chain management to shorten product delivery time and reducing overall procurement costs for the company and add more value to customers. Not only does it get brand benefits arising out of, and can be differentiated through and other products as well as the promotion of good relations with customers to reduce the company's costs and improve relationships with suppliers, streamline business processes to enable organizations to focus on its core competencies.
Most managers or academic researchers have agreed with this view, supply chain management is the key to gaining a competitive advantage. However, if a more detailed inquiry SCM Consistent definition, even the most famous managers and academics will be racking their brains.
Supply chain management is a very broad term, often easily be misunderstood, in many different opinions, yet no complete explanation of.
What is supply chain management, supply chain management is defined as a collaborative strategy, goals is to integrate upstream and downstream operations, to eliminate non-value added cost, infrastructure, time and behavior, by competitive for the end customers to provide better services.
In order to show that SCM is and what is not, the following will clarify some of the most common misconceptions;
Myth: Supply chain is a hoax
Namely, the concept is old and new packaging. Due to the impact of IT technology, SCM's practical development in the past 10 years, rapid growth. The rapid increase in PC computing speed, communication, data management software to enhance the capacity and variability of both the new practices, policies, strategies and applications. In fact, various industries, such as VMI (Vendor Managed Inventory) and warehousing sector and collaborative planning, forecasting, supplementary (CPFR) strategy, with the potential of collaborative supply chain management roles simultaneously.
Misunderstanding: SCM is a synonym for logistics management
Is the essence of supply chain management, operations, strategy and strategic integration planning. Such planning requires that all activities and processes, such as customer order fulfillment, purchasing behavior, the optimal integration of manufacturing resource planning and logistics of the enterprise-wide, end to end integration. Ultimately, SCM to integrate critical business operations and supply chain operational relationship.
However, the logistics (according to the definition of Council of Logistics Management), is a part of the supply chain processes, planning, implementation and control of goods, services, and information in accordance with customer demand delivery from the source to the flow and storage.
|
