Supply chain management may be said to be broadly about the efficient and effective management of all activities. Supply chain management scm is the active streamlining of a business supplyside activities to maximize customer value and gain a competitive advantage in the. This tutorial will be useful for students from management streams who aspire to learn the basics of supply chain management. Supply chain and logistics terms and glossary updated. The goals and benefits of proper supply chain management go handinhand, but for the sake of clarity well separate them into two types. Supply chain management is the integration of key business processes from end user through. Common and accepted definitions of supply chain management are. Managing a supply chain effectively involves coordinating all of the work inside of your company with the things that are happening outside of your company.
Therefore, as was the case when we wrote defining supply chain management we discuss the changing as well as unchanging nature of scm and based on the ever. In presenting the relevance of defining supply chain management. It was originally created by the toyota motor corporation and was named for the paper size on which it was printed. Supply chain management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed in the right quantities, to the right locations and at the right time, and so as to minimize total system cost subject to satisfying. Such is the case with the term supply chain management so many definitions are used that there is little consensus on what it means. Defining supply chain management mentzer 2001 journal. Get ebooks supply chain management on pdf, epub, tuebl, mobi and audiobook for free. Supplychain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve a competitive advantage. Cscmp refers to itself as the preeminent worldwide professional association of supply chain management professionals with a vision to lead the evolving supply chain management. Introduction to supply chains what is supply chain management. As recently as 2017 a typical supply chain accessed 50 times more data than just five years earlier. It is said that the ultimate goal of any effective. Despite the popularity of the term supply chain management, both in academia and practice, there remains considerable confusion as to its meaning.
The goal of this discussion is the development of one, comprehensive definition upon which managers and. Supply chain management scm is the active streamlining of a business supply side activities to maximize customer value and gain a competitive. Supply chain management definition and importance of its. Fundamentals of supply chain management is based on the authors many years of teaching and research experience. Thus, the purpose of this paper is to examine the existing research in an effort to understand the concept of supply chain management. It represents a conscious effort by the supply chain firms to develop and run supply. Supply chain risk management why does risk management matter. This guide signals a change in attitude to management of the supply chain in the public sector and its messages are also targeted at suppliers to the public sector key messages strike a balance effective supply chain management is a question of allocating management of the supply chain to the parties best placed to understand and coordinate the. Toyota used the a3 methodology to help develop its famed toyota production system tps. The concept of supply chain is well established in the literature and is generally. Supply chain management is the systematic, strategic coordination of the. A supply chain management scm system is a set of software solutions that manages and oversees the flow of goods, data, and finances as a product or service moves from point of origin to its final. Supply chain management in public sector procurement.
It affects every business irrespective of size, age, sector or location. Ae defining the concept of supply chain management and its. About the tutorial supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser. The master degree in operations and supply chain management is designed to provide students with a fundamental understanding of company supply chain management from a global perspective, with an emphasis on leveraging the effects of the operations and supply chain management. Supply chain management may be said to be broadly about the efficient and effective management. It provides guidance materials to continuously improve on time, on quality delivery otoqd throughout the entire value stream. Journal of supply chain management wiley online library. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. Supply chain management is a crossfunction approach including managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the endconsumer. If you go to a supermarket and pick up a few items off the shelf from electronics and white goods or even clothes and look at the labels, the chances are that you will find them having been manufactured in china or mexico.
Supply chain activities cover everything from product. The mission of the journal of supply chain management is to be the journal of choice among supply chain management scholars across disciplines, by attracting highquality, highimpact behavioral research focusing on theory building and empirical methodologies. Supply chain management involves coordinating and integrating these flows both within and among companies. In terms of lean production, scm is closely related to lean supply. With the supply chain covering a broad range of disciplines, the definition of what is a supply chain. Part two the definition of supply chain management executive summary supply chain management is still evolving and developing and there are, therefore, numerous definitions of it, some of which are presented in this paper. The international warehouse logistics association iwla does not take responsibilityfor the content of these definitions.
Tous les grands groupes industriels ont mis en place une fonction supply chain management. In section three we explain the framework and the methodology used for. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the product or. Wielandwallenburg, 2011 supply chain management scm is the management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain. Definition of supply chain and supply chain management. Supply chain management definition of supply chain. Risk changes over time mechanisms are required to access information from a wide range of information sources and to analyse this to update the risk management process. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes. Supply chain fraud 2 3 global profiles of the fraudster kpmg international, ma, y 2016. Understanding your value chain, and how china fits into it, can lead to tremendous tax savings. Supply chain management efforts enhance and improve efficiencies throughout every stage of the process, making it quicker, easier, more affordable and valuable to both the company and end users.
Fundamentals of supply chain management kenyatta university. By managing the supply chain, companies are able to cut excess costs and deliver products to the consumer faster. Supply chain management is the coordination of production, inventory,location,and transportation among the participants in a supply chain to achieve. This definition certainly gives the supply chain management concept a ubiquitous and pervasive nature. Section two considers the bodies of literature associated with supply chain management and discusses the different perspectives adopted by various authors. It addresses the most fundamental concepts and best practices of contemporary supply chain management. Zygiaris, msc, bpr engineer bpr hellas sa 2 1 description 1. Supply chain management can be defined as the management of flow of products and services, which begins from the origin of products and ends with the products consumption at the enduser. Supply chain and logistics terms and glossary updated february, 2010 please note.
Scm is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. A new introduction to supply chains and supply chain management. Ae defining the concept of supply chain management and its relevance to romanian academics and practitioners 76 amfiteatru economic business market on the circuit cocacola wholesaler retailer final consumer caescu and dumitru, 2011. Supply chain management and associated terms, through a variety of. Pdf on feb 1, 2012, andrzej szymonik and others published logistics and supply chain management find, read and cite all the research you need on researchgate.
Supply chain management affects product and service quality, delivery, costs, the customer experience and ultimately, profitability. Supply chain management supply chain management managing complex and dynamic supply and demand networks. Supply chain management in healthcare should ensure complete endtoend visibility of information among suppliers, manufacturers, distributors and customers. Finally, cost is not the only element of a supply chains performance, as well discuss later. Supply chain activities cover everything from product development, sourcing and production to logistics, as well as the information systems needed to coordinate these activities. This is a brief introductory tutorial that explains the methodologies applied in the rapidly growing area of supply chain management. Mastering logistics end to end supply chain management enables enterprises to source the materials necessary to create a product or service and deliver that. Coordination of supply chain 21, strategic supply chain management 22 and thus, strategic supplier selection is acting more significant role in manufacturing 23. Supply chain management scm is the broad range of activities required to plan, control and execute a products flow, from acquiring raw materials and production through distribution to the final customer, in the most streamlined and costeffective way possible.
Some definitions of a supply chain are offered below. In the right quantities to the right locations at the right time in order to minimize total system cost. With different emphases most definitions of supply chain management, efficient consumer response and vertical marketing systems agree on the vertical cooperation aspect within the value chain e. There are more than 1 million books that have been enjoyed by people from all. It was originally created by the toyota motor corporation and was named for the. Supply chain management is primarily concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced. In the late 1990s, supply chain management scm rose to prominence, and operations managers began to use it in their titles with increasing regularity. Supply chain management handbook the supply chain management handbook scmh is a collection of guidance material developed by iaqg member company subject matter experts.
Importantly, it also includes coordination and collaboration with channel partners. Supply chain management was then further defined as the integration of supply chain activities through improved supply chain relationships to achieve a competitive advantage. Pdf definition, nature and objectives of supply chain. The main purpose of the healthcare supply chain is to. Supply chains now deal with reverse logistics to handle returned products, warranty repairs, and recycling. Definition, nature and objectives of supply chain management.
The healthcare supply chain involves the flow of many different product types and the participation of several stakeholders. The international warehouse logistics association iwla does not take responsibilityfor the content of these definitions and doesnot endorse theseas official. Supply chain management scm is the centralized management of the flow of goods and services and includes all processes that transform raw materials into final products. Defining the supply chain the definition of supply chain seems to be more common across authors than the definition of supply chain management cooper and ellram 1993. What is supply chain management, and why is it important. Supply chain management requires continuous decisionmaking in five distinct areas. Supply chain management scm is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. Supply chain management scm is a concept originating from the supply system by which toyota was seen to coordinate its supplies, and manage its suppliers womack et al.
Supply chain management scm is the oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Such is the case with the term supply chain managementso many. May 10, 2011 a management construct cannot be used effectively by practitioners and researchers if a common agreement on its definition is lacking. We recommend the definition of supply chain management developed and used by the global supply chain forum. Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced and distributed. Pdf defining the concept of supply chain management and its. Cscmps definition of 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. Sc1x supply chain and logistics fundamentals lesson.
What is supply chain management scm and why is it important. Cscmp supply chain management definitions and glossary. Supply chain management is the planning and coordination of all of the people, processes, and technology involved in creating value for a company. Supply chain management is concerned with the efficient integration of suppliers, factories, warehouses and stores so that merchandise is produced. Supply chain management supply chain management is a business process which although still evolving has been in existence for many years. Scm is a complex topic to understand because it encompasses the management of many activities, and involves multiple role. Most of my courses on supply chain management were targeted at the master and executive levels, from. Effective supply chain management requires simultaneous improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain. With the supply chain covering a broad range of disciplines, the definition of what is a supply chain can be unclear. The supply chain management scm profession has continued to change and evolve to fit the needs of the growing global supply chain. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the.