The supply chain is the facilitation of movement of goods, services, information or financial resources from a supplier or producer to the end consumer. Intermediaries such as wholesalers and retailers may or may not be part of the chain. Supply chain management (SCM) is the act of ensuring that this process takes place effectively. A reduction in inventory with time is regarded as an indicator that indeed the supply chain is achieving its objective.
There are three types of flows that have to be considered individually and collectively: product flow, information flow and financial flow. Product flow refers to the movement of goods and services from the supplies to the end consumer. Information flow is the transmission of orders and updating consumers on the status of their orders as they are transported to them. Financial flow concerns title ownership arrangements, consignments, payment schedules and credit agreements.
The increased use of web-based applications in SCM is one of the measures that have been undertaken to increase the efficiency. The available applications fall under two major categories: planning and execution applications. Those that fall under the planning category are mainly involved with the placement of orders. Those classified as execution orders, in contrast, are used in tracking products, financial information and other materials.
Open data models used by some of the applications make it possible to share data within an enterprise or between the enterprise and other stakeholders. This is what leads to what is sometimes referred to as an extended enterprise. When the data is to be shared, it will be held in a number of data warehouses found at different sites in different companies. By sharing the data with suppliers, the time-to-market of goods is markedly minimized.
Another important step that needs to be undertaken so as to get maximal benefits of SCM is shifting from concentrating on the management of individual function and consideration integration. Just as is the case with data sharing, the idea here is to look at the different departments within the enterprise as well as other players such as customers, suppliers and product developers as part of a single unit.
Sustainability and social responsibility are issues that have to be addressed by all companies. As a supply manager, you need to ensure that all the enterprises involved meet the minimum requirements. Environmental sustainability is in particular an important factor in modern businesses. Consumers are becoming increasingly environmental conscious and are likely to favor products from companies that share their beliefs. Choose suppliers that care about their environmental.
There are a number of things that have to be made before the certification of a supply manager. One of them and perhaps the most important, is the acquisition of skills and knowledge. These related to different aspects such as inventory management, business continuity skills, warehousing, and transportation among others. Certification is usually done after passing a pre-registration exam.
Managing the supply chain ensures that goods and services move from the supplier to the consumer as intended. Delays within the chain will affects all the players involved. It is important that information is shared between departments in an enterprise and between different enterprises working together to make the process seamless.
There are three types of flows that have to be considered individually and collectively: product flow, information flow and financial flow. Product flow refers to the movement of goods and services from the supplies to the end consumer. Information flow is the transmission of orders and updating consumers on the status of their orders as they are transported to them. Financial flow concerns title ownership arrangements, consignments, payment schedules and credit agreements.
The increased use of web-based applications in SCM is one of the measures that have been undertaken to increase the efficiency. The available applications fall under two major categories: planning and execution applications. Those that fall under the planning category are mainly involved with the placement of orders. Those classified as execution orders, in contrast, are used in tracking products, financial information and other materials.
Open data models used by some of the applications make it possible to share data within an enterprise or between the enterprise and other stakeholders. This is what leads to what is sometimes referred to as an extended enterprise. When the data is to be shared, it will be held in a number of data warehouses found at different sites in different companies. By sharing the data with suppliers, the time-to-market of goods is markedly minimized.
Another important step that needs to be undertaken so as to get maximal benefits of SCM is shifting from concentrating on the management of individual function and consideration integration. Just as is the case with data sharing, the idea here is to look at the different departments within the enterprise as well as other players such as customers, suppliers and product developers as part of a single unit.
Sustainability and social responsibility are issues that have to be addressed by all companies. As a supply manager, you need to ensure that all the enterprises involved meet the minimum requirements. Environmental sustainability is in particular an important factor in modern businesses. Consumers are becoming increasingly environmental conscious and are likely to favor products from companies that share their beliefs. Choose suppliers that care about their environmental.
There are a number of things that have to be made before the certification of a supply manager. One of them and perhaps the most important, is the acquisition of skills and knowledge. These related to different aspects such as inventory management, business continuity skills, warehousing, and transportation among others. Certification is usually done after passing a pre-registration exam.
Managing the supply chain ensures that goods and services move from the supplier to the consumer as intended. Delays within the chain will affects all the players involved. It is important that information is shared between departments in an enterprise and between different enterprises working together to make the process seamless.
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