The supply chain is the facilitation of movement of goods, services, information or financial resources from a supplier or producer to the end consumer. Intermediaries such as wholesalers and retailers may or may not be part of the chain. Supply chain management (SCM) is the act of ensuring that this process takes place effectively. A reduction in inventory with time is regarded as an indicator that indeed the supply chain is achieving its objective.
There are three types of flows that have to be considered individually and collectively: product flow, information flow and financial flow. Product flow refers to the movement of goods and services from the supplies to the end consumer. Information flow is the transmission of orders and updating consumers on the status of their orders as they are transported to them. Financial flow concerns title ownership arrangements, consignments, payment schedules and credit agreements.
The adoption of web-based computer applications to assist with SCM by many companies has contributed to greater efficiency. The applications that are being used are of two main types: planning and execution. Planning applications are based on algorithms that facilitate the filling of client orders. Execution orders, on the other hand, are used to track and manage financial information and materials.
The open data model is an arrangement in which applications allow data to be shared between the various departments of an enterprise and between different enterprises in the chain. To make the process easier, information that is to be shared is stored in various data warehouses found in different sites and in different companies. The sharing process has helped markedly reduce the time-to-market of many goods and services.
Another important step that needs to be undertaken so as to get maximal benefits of SCM is shifting from concentrating on the management of individual function and consideration integration. Just as is the case with data sharing, the idea here is to look at the different departments within the enterprise as well as other players such as customers, suppliers and product developers as part of a single unit.
There has been pressure coming from various quarters aimed at ensuring that companies use sustainable SCM models. Sustainability relates to different aspects of business such as economic, social and environmental. Research has shown that the carbon footprint contributed by supply chains could be as much as 75% of the total contribution of an average company. Many companies are, for this reason choosing suppliers that are environmental conscious at the expense of those that are not.
There are a number of things that have to be made before the certification of a supply manager. One of them and perhaps the most important, is the acquisition of skills and knowledge. These related to different aspects such as inventory management, business continuity skills, warehousing, and transportation among others. Certification is usually done after passing a pre-registration exam.
Managing the supply chain ensures that goods and services move from the supplier to the consumer as intended. Delays within the chain will affects all the players involved. It is important that information is shared between departments in an enterprise and between different enterprises working together to make the process seamless.
There are three types of flows that have to be considered individually and collectively: product flow, information flow and financial flow. Product flow refers to the movement of goods and services from the supplies to the end consumer. Information flow is the transmission of orders and updating consumers on the status of their orders as they are transported to them. Financial flow concerns title ownership arrangements, consignments, payment schedules and credit agreements.
The adoption of web-based computer applications to assist with SCM by many companies has contributed to greater efficiency. The applications that are being used are of two main types: planning and execution. Planning applications are based on algorithms that facilitate the filling of client orders. Execution orders, on the other hand, are used to track and manage financial information and materials.
The open data model is an arrangement in which applications allow data to be shared between the various departments of an enterprise and between different enterprises in the chain. To make the process easier, information that is to be shared is stored in various data warehouses found in different sites and in different companies. The sharing process has helped markedly reduce the time-to-market of many goods and services.
Another important step that needs to be undertaken so as to get maximal benefits of SCM is shifting from concentrating on the management of individual function and consideration integration. Just as is the case with data sharing, the idea here is to look at the different departments within the enterprise as well as other players such as customers, suppliers and product developers as part of a single unit.
There has been pressure coming from various quarters aimed at ensuring that companies use sustainable SCM models. Sustainability relates to different aspects of business such as economic, social and environmental. Research has shown that the carbon footprint contributed by supply chains could be as much as 75% of the total contribution of an average company. Many companies are, for this reason choosing suppliers that are environmental conscious at the expense of those that are not.
There are a number of things that have to be made before the certification of a supply manager. One of them and perhaps the most important, is the acquisition of skills and knowledge. These related to different aspects such as inventory management, business continuity skills, warehousing, and transportation among others. Certification is usually done after passing a pre-registration exam.
Managing the supply chain ensures that goods and services move from the supplier to the consumer as intended. Delays within the chain will affects all the players involved. It is important that information is shared between departments in an enterprise and between different enterprises working together to make the process seamless.
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