What is Supply Chain Management ?
Supply Chain Management (SCM) is the systemic strategic coordination of the traditional business functions within a particular company and across businesses within the supply chain for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole. In a supply chain all parties are involved either directly or indirectly to complete the request of a customer.
The management system includes manufacturers suppliers and then transporters warehouses retailers and customers as well. SCM in an organization is related with all the concerned functions such as receiving and completing a customers request.
There are various stages in a supply chain mentioned as below:-
Customers : Retailers : Whole sellers : Distributors : Manufactures : Components : Raw material suppliers
Why is the need of mean MBA in supply chain management?
For the supply concerns the corporate have reached the global sources now. Due to this global access of supply management has resulted into finding some more efficient ways of coordination between materials flow into and out of a company.
There is huge competition between companies and distribution channels as far as the quality and time are concerned.
The customers now need the desired demand in a faster way and on time only. They also want the products error free. These requirements have got both suppliers and distributors come closer and the supply chain management is needed for that.
There is great need of flexibility in individual companies and distribution channels and this is possible only when the supply management is set up. Therefore the above mentioned points result into the formation of supply chain management.
What is supply chain management objective of supply chain?
The main focus of the MBA in SCM is to enhance the value generated. Value generated by the supply chain is defined as the difference between cost of the final products to the customers and the cost involved in manufacturing it.
SUPPLY CHAIN MANAGEMENT IN GLOBAL ENVIRONMENT:-
There is great pressure on globalization of business in recent few years. The pressure is a core reason of improving customer demands and services. The increase in demand has resulted into initiation of improvements in businesses.
These initiations may be implementation of JIT (Just-In –Time) and QR (Quality Management) business re-engineering and supply chain management as tools that can enhance the competitiveness.
On other hand the companies always have an eye on the foreign market for opportunities of growth or to improve the source opportunities. This enhancement of the interest in foreign business has caused emergence of various trends.
Since the firms have stepped forward to participate in global economy to develop a relation between SCM issues and opportunities in a global context it has become more important now.
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