Supply chain management is the supervision of a set of connections of organized businesses drawn in the definitive condition of manufactured goods and service parcels required by ending clientele. Supply Management spans all progress and storage space of raw materials, work-in-process stock, and completed merchandise from point of origin to point of utilization. Supply chainmgnt software includes tools or modules used to carry out dealings, administer supplier associations and be in charge of linked commerce processes.
Six most important activities can be observed in the progression of supply chain management study: Creation, Integration, Globalization Specialization Phases One and Two, and SCM 2.0.Supply chain business course of action involves shared work involving buyers and suppliers, joint product development, common systems and shared information. Common SCM problems involve distribution strategy, distribution of network configuration, trade-offs in logistical activities, information, inventory management and cash-flow.
Successful SCM entails a alteration from managing individual functions to integrating actions into key supply chain processes. An example scenario: the purchasing department places orders as requirements are known. The marketing department, responding to customer requirements, converses with a number of distributors and retailers as it tries to establish ways to satisfy this requirement.
Logistics management activities usually consist of 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.
If the Supply chain management is global in nature many more challenges in addition to existing problems comes into picture as the lead time is much longer. Actions in supply chain management can as well be classified into various levels like strategic, tactical and operation.