The supply chain is the process through which products, information and financial resources move from a supplier to the consumer. Often, manufactures, wholesalers and retailers exist as intermediaries. Supply chain management, SCM, is simply exercising oversight over this process and ensuring that it is seamless. Coordination and integration may be done either within a company or between two companies. The process is said to be successful if there is a reduction in inventory.
Each of the goods and services making up the chain serve an important function to the entire process. Product flow simply refers to the transfer of goods (or services) from the producer to the consumer. Information flow relates to the act of transmitting orders and subsequently updating clients on the status of these orders as they are moved. Financial flow refers to aspects such as payment schedules, consignments, credit arrangements and so on.
In a bid to make the process more efficient, most SCM firms have adopted the use of web based applications. The applications that are used here are of two main types: those used for planning and those that make execution possible. Planning applications are designed as algorithms that help in the filling of orders. Execution applications, on the other hand, help in product tracking, management of various materials as well as the relevant financial information.
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.
Business integration is another step that should be taken so as to make the most use of SCM. What this means is that rather than focusing on the management of individual units, the focus should be on integrating different departments and related enterprises. Suppliers, customers, product developers and other stakeholders should be facilitated to communicate each other if this is to be successful.
Business have been under pressure to be more environmental conscious. It is interesting to note that about 75% of carbon footprint for an average company. All the enterprises in the supply process should strive to ensure that they reduce environmental damage to the very minimum. As a manager, appreciate that consumers are becoming increasingly preferential of products that have been produced through processes that cause the least impact to the environment.
To be certified as a supply chain manager, you will need to meet a number of requirements. One of these requirements is that you need to acquire the relevant skills and knowledge. This relates to functions such as warehousing, transportation, management of inventory and business continuity strategies and so on. In most countries, there is a certification exam that one has to sit before they are registered by the relevant professional body.
The supply chain exists in almost every type of business. There is a need to have it managed properly so that the products and information can move from the supplier to the consumer and in the reverse direction with more efficiency. One of the most important ingredients that ensure this happens is the existence of effective communication between the players involved.
Each of the goods and services making up the chain serve an important function to the entire process. Product flow simply refers to the transfer of goods (or services) from the producer to the consumer. Information flow relates to the act of transmitting orders and subsequently updating clients on the status of these orders as they are moved. Financial flow refers to aspects such as payment schedules, consignments, credit arrangements and so on.
In a bid to make the process more efficient, most SCM firms have adopted the use of web based applications. The applications that are used here are of two main types: those used for planning and those that make execution possible. Planning applications are designed as algorithms that help in the filling of orders. Execution applications, on the other hand, help in product tracking, management of various materials as well as the relevant financial information.
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.
Business integration is another step that should be taken so as to make the most use of SCM. What this means is that rather than focusing on the management of individual units, the focus should be on integrating different departments and related enterprises. Suppliers, customers, product developers and other stakeholders should be facilitated to communicate each other if this is to be successful.
Business have been under pressure to be more environmental conscious. It is interesting to note that about 75% of carbon footprint for an average company. All the enterprises in the supply process should strive to ensure that they reduce environmental damage to the very minimum. As a manager, appreciate that consumers are becoming increasingly preferential of products that have been produced through processes that cause the least impact to the environment.
To be certified as a supply chain manager, you will need to meet a number of requirements. One of these requirements is that you need to acquire the relevant skills and knowledge. This relates to functions such as warehousing, transportation, management of inventory and business continuity strategies and so on. In most countries, there is a certification exam that one has to sit before they are registered by the relevant professional body.
The supply chain exists in almost every type of business. There is a need to have it managed properly so that the products and information can move from the supplier to the consumer and in the reverse direction with more efficiency. One of the most important ingredients that ensure this happens is the existence of effective communication between the players involved.
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