What is SCM?

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Supply Chain Management:

A supply chain is the process of moving goods from the customer order through the following stages:

        Raw Materials
                        --> Supply
                                        --> Production
                                                            --> Distribution
                                                                                --> Customer

All organizations have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured.  These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer.

Managing this process is known as supply chain management.  Effective management must take into account coordinating all the different pieces of this chain as quickly as possible without losing any of the quality or customer satisfaction, while still keeping costs down.

In addition, key to the success of a supply chain is the speed in which these activities can be accomplished and the realization that customer needs and customer satisfaction are the very reasons for the network.  

BENEFITS OF SCM:

Customer Satisfaction Reduced Inventories
Lower Operating Costs Product Availability
Faster Delivery Reduced Lead Time
Flexibility Competitiveness

KEY ELEMENTS OF SCM:

Production

Supply
Inventory Location
Transportation Information

SUMMARY:

Supply chain management (SCM) involves all of the activities associated with moving goods from raw materials stage through to the end user or customer. This includes procurement, production scheduling, order processing, inventory control, transportation ,warehousing and customer service.   It coordinates and integrates all of these activities into a seamless process.  It links all of the partners in the chain  (departments, vendors, carriers, third-party companies, information systems).

Sources:
  - American Production and Inventory Control Society
  - Rockford Consulting Group, Ltd.
  - Andersen Consulting
  - Supply Chain Management Review

Contact Inventory Solutions Logistics Corp. for help with:

Improve Material Flow

Freight Negotiations

MRP / Forecasting

Reduce Manufacturing Cost

Supply Chain Mgmt

Import / Export

Lead Time Reduction

Master Production Schedule

Training / Consulting

Distribution Center

Inventory Cost Reduction

Just-In-Time

Supplier Networking

Trucking / Freight

Increase Profit

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