Management is as fascinating a subject as any. Recognised as
a critical tool that can make or mar any business, today,
thanks to the Information technology.
After all, what is a Supply Chain ?
is from supplier's supplier to customer's customer management
of information flow,
physical flow and cash flow to earn money for a business
entity by satisfying customer with safety, good
quality/service and competitive cost.
"A supply chain is a system of organizations, people,
technology, activities, information and resources involved
in moving a product or service from supplier to customer.
Supply chain activities transform natural resources, raw
materials and components into a finished product that is
delivered to the end customer. In sophisticated supply chain
systems, used products may re-enter the supply chain at any
point where residual value is recyclable. Supply chains link
Marketing Management is a business discipline which is
focused on the practical application of marketing techniques
and the management of a firm's marketing resources and
activities. Rapidly emerging forces of globalization have
compelled firms to market beyond the borders of their home
country making International marketing highly significant
and an integral part of a firm's marketing strategy.
Marketing managers are often responsible for influencing the
level, timing, and composition of customer demand through accepted
definition of the term. In part, this is because the role of
a marketing manager can vary significantly based on a
business' size, corporate culture, and industry context. For
example, in a large consumer products company, the marketing
manager may act as the overall general manager of his or her
assigned product to create an effective, cost-efficient
Marketing management strategy, firms must possess a
detailed, objective understanding of their own business and
the market in which they operate. In analyzing these
issues, the discipline of marketing management often
overlaps with the related discipline of strategic planning.
You can interpret it that way "it is management of
supplies", but remember supplies start from one party and
ends at another, both indefensible; the ultimate goal being
maximizing the total (not individual) supply chain profit. A
good supply chain addresses smooth flow of goods/services,
information and cash across SC parties. Importance of
Coordination and Collaboration is paramount in achieving the
The principal aim of supply chain is to
increase the profit percentage among different organisations
connected by supply chain as compared to their profit when
they were not connected with a supply chain. If after
creating a supply chain profit among all the levels is same
as previous profit then it wouldn't qualify as a supply chain.
So, all the activities that one has to manage to enhance
profit or quality or any such parameter comes under the
ambit of supply chain management.
A simple definition is the creation and management of
the entire supply chain to meet all customers' needs (current
and future) and assure the best cost, quality and delivery.
SCM cuts across the entire operations of an organization.
That is from Supplier's Supplier to Consumers. (ie Supplier
management, Plan, Source, Make, Move, Consumer management)
Logistics is effective and efficient management of
flow of Goods, Services and info from point of origin to
point of destination in both the directions and Supply Chain
includes all parties & functions in the chain. Objective of
SCM is to maximize the overall supply chain profitability,
by achieving effectiveness/efficiency in Supply chain
depending on a company's goal.
The description now needs to be more about value
chain...rather than supply chain...which encompasses
suppliers (including all the sub-suppliers), OEM & after
what is Supply Chain is perhaps another apt
question. The Supply Chains cover not just the
flow of products and materials at a basic level
but cover other areas such as Finance, HR,
Purchasing, Merchandising, Strategic Planning
amongst others - it could cover an entire
operations but in most cases many of the other areas are
stripped off and operate as stand alone departments.
Supply Chain in most western firms revolves around the flow
of product into and through a business including primarily
inventory management and distribution functions but it is
bigger than that as the best supply chains
operate across the whole spectrum of functions within a
business be that a small local firm or a global
international operator - the name gives it away - Supply
Chain - product or service moves through the business across
the different departments all - hopefully - working together
to improve efficiency and remove cost, free up cash, improve
Supply Chain is the backbone of a modern business. The firms that perform best in this recession
will be the ones' with the most switched on and flexible
Supply Chains than can flex to meet the varying demands of
the current economic climate.
Supply-Chain Management is thus "everything required to
satisfy the demand of customers"
SCM is all about the activity and processes that is
associated with from Farm to Fork
It can also be defined as the integrated set of business activities that begins with
the sourcing of raw material and extends through order
delivery to the customer and receipt of payment
Supply Chain Management - The term itself defines i.e.
managing the chain of supply from receiving the request from
requestor, processing it till the material/services reach
the requestor, further requestor is satisfied with received
material / services. The entire process to reach and manage
upto this stage i.e. from request upto satisfaction of
requestor in terms of his request can be termed as supply
Supply chain management is the implementation of a supply
orientation between suppliers and customers.
Supply Chain Management is the optimal balance between a
functional design of multiple connecting departments /
systems and proper execution by the workforce, supervised by
(operational) managers who keep a sharp eye on both. This is both a definition as the key to success of SCM.
It is also a management of supplies at right price, at right
time and of a right quality.
The definition of SCM is dependent on what a Supply Chain is in the
first place. (Obviously, how can someone manage something
that he or she does not know and/or understand?)
Fundamentally, a Supply Chain is a flow network, where similar
entities (plants, dc's, w/h's) are linked together to allow flow of goods, information, and cash
among them. Now,
what is a Supply Chain ? The responsibility for and controlling of this
group of entities to maintain the flows accordingly.
supply chain management is a
combination of the following 7 interrelated components:
supply chain strategy, supply chain planning, supply chain
operations, procurement, logistics, product life cycle
management, supply chain enterprise applications. Good at
managing one or two components cannot guarantee sustainable
success in the long run, only those who are adept at
managing the integrated whole will survive and become
leaders in their industries.
All activities for which the company receives an invoice
from outside parties.
“Managing the company’s external resources in such a way
that the supply of
all goods, services, capabilities and knowledge which are
running, maintaining and managing the company’s primary and
activities is secured at the most favorable conditions”.
All activities that are required in order to get the product
from the supplier to its final destination.
Finding sources of supply, guaranteeing continuity in
supply, ensuring alternative sources of supply and gathering
knowledge of procurable resources.
All activities that are required to manage supplier
Supply Chain Management:
The management of all activities, information, knowledge and
financial resources associated with the flow and
transformation of goods and services up from the raw
materials suppliers, component suppliers and other suppliers
in such a way that the expectations of the end users of the
company are being met or surpassed
Value Chain Management:
Challenging suppliers to improve the value proposition to
the end-customers of the value chain. Usually the supplier
works closely together with the customer’s technical and
marketing staff to reduce the product’s overall costs and
add new designs or features to the product which increases
the value for the end-customer.
It's organizing the cost effective flow and storage of
materials, in-process inventory, finished goods and related
information from point of origin to point of consumption to
satisfy customer requirements.
However, supply chain is the sequence of suppliers that
contribute to the creation and delivery of a good or service
to end customers.
Cradle to Grave : managing from the start of the origin of
raw material to the end where the product is discarded or
Well, its simple, so let it be simple.... It starts from
acquiring materials from mother earth, producing or
processing them into products till delivering to the
consumer, and the reverse. This involves the rest of support
activities i.e. logistics, procurement, inventory,
warehousing....and the list goes on !