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Supply chain management.

Article Excerpt
[check] This checklist describes some of the key elements in supply chain management. It focuses on business analysis, supplier management, and partnerships and networks.

An integrated supply chain, where every organisation is working together to produce the simplest and most cost-effective flow of resources, is of importance to every supplier since supply chain activities can account for between 5 to 20 per cent of sales. Many businesses have come to recognise that the future lies not with individual firms, but with networks of allied organisations and technology has evolved to offer greater potential for cooperation.

Definition

Supply chain management is an effective tool for business process improvement. It begins with the source of supply and ends at the point of consumption. Supply chain management covers the flow of materials and information from suppliers, through a number of value adding processes and distribution channels, to the customer.

The aim of supply chain management is to achieve a balance between the goals of high quality customer service and low inventory and unit cost. It is concerned with a range of issues, including:

* purchasing

* the physical movement of materials

* materials management

* manufacturing management

* supplier management.

Advantages of supply chain management

If properly designed and managed, supply chain management will:

* improve customer service

* achieve a balance between costs and service

* reduce costs throughout the supply chain

* improve relationships...

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