Supply chain management (SCM) is the management of the flow of prodcts.It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
A supply chain is a network of facilities and delivery options that performs the task of procurement of materials, conversion of these materials into intermediate and finished products, and distribution of finished products to consumers/customers. Supply chains exist in both service and manufacturing organizations, although the complexity of the chain may vary greatly from organization to organization.
Supply Chain planning
Location planning: What would be best location for planning and distribution for business.
Production planning: What product would be produced.
Inventory planning: How much inventory need to maintain to keep overall business in balance.
Transportation planning: How product will be transported to customers.
Network Design Methods for SCM
As the very name suggests, these methods determine the location of production, stocking, and sourcing facilities, and paths the product take through them.These networks are optimized paths which are developed by experts to achieve the goals by minimizing the expnses.
SCM 2.0 replicates this notion in supply chain operations. It is the pathway to SCM results, a combination of processes, methodologies,tools, and delivery options to guide companies to their results quickly as the complexity and speed of the supply chain increase due to global competition; rapid price fluctuations; surging oil prices; short product life cycles; expanded specialization; near-, far-, and off- shoring; and talent scarcity.
SCM 2.0 leverages solutions designed to rapidly deliver results with the agility to quickly manage future change for continuous flexibility, value, and success. This is delivered through competency networks composed of best-of-breed supply chain expertise to understand which elements, both operationally and organizationally, deliver results, as well as through intimate understanding of how to manage these elements to achieve the desired results.