What is Supply Chain Management?
Supply chain management refers to the network of all the internal and external aspects of an organization that deals with the supply and demand process. These aspects are employees, organizations, resources, activities, and technology. Supply chain management is set up to take care of everything from the delivery of source materials from the suppliers to manaufactureres.
An effective supply chain management system can help organizations streamline their activities to reduce waste and expenses and maximize customer value by gaining sustainable competitive advantages in the target market.
The five most critical phases of supply chain management are planning, sourcing, producing, distribution, and returns. Moreover, management has to focus. On the following 7Rs of logistics for implementing these five phases efficiently:
- Right Product
- Right Quantity
- Right Condition
- Right Place
- Right Customers
- Right Price
These 7Rs of supply chain logistics help organizations follow a synchronized process to meet specific criteria such as timeline, demand, and customer satisfaction.
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Components & Functions of a Supply Chain Network
Supply chain management has five major functions, which include:
Purchasing
Purchasing is the process of sourcing materials from reliable suppliers who have less negotiation power, ensuring timely delivery of materials.
Operations
Operational activities include accurate forecasting that aligns with inventory management and production schedules.
Logistics
Logistics encompasses warehousing, transportation, inventory planning, etc. Through good logistical management, suppliers and intermediaries work together to ensure service quality is up to the mark.
Resource Management
Resource management is the planning, organizing, and controlling of raw materials. This process includes labor, technology, and strategy that helps to produce ready-to-consume products from raw materials.
Information Workflow
Information workflow relates to what and how information passes between responsible members of the supply chain. To avoid disruptions and delays in the supply chain, organizations must employ a systematic approach to ensure companies have the correct data.
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Choosing an interesting topic for SCM assignments is indeed a daunting task. Therefore, to make your job a bit easier, here is a list of engaging topics:
- What are the major challenges faced by UK car manufacturers in terms of supply chain management?
- What is the effect of Covid-19 on logistics and transportation systems?
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- What is the role of Artificial Intelligence in predictive analytics for effective inventory management?
- How does block chain help in sustainable supply chain management?
- What is the effect of good supply chain management practices on the overall performance of a company?
- What is the relationship between environmental management practices and supply chain integration?
- What is the importance of demand forecasting in Omnichannel retail: Comparative analysis of forecasting models?
- What is the impact of the political and regulatory changes on the supply chain process?
- What is the importance of building risk mitigation strategies for supply chain resilience in the food industry?
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