Supply Chain Management : Supply Chains

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1.3 Supply Chain Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fits into one or more supply chains and has a role to play in each of them. The pace of change and the uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participate in and to understand the roles that they play. Those companies that learn how to build and participate in strong supply chains will have a substantial competitive advantage in their markets. The practice of supply chain management is guided by…show more content…
The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves.”(Chopra and Meindl, 2001). • “A supply chain is a network of facilities and distribution options that performs the functions of procurement of materials, transformation of these materials into intermediate and finished products, and the distribution of these finished products to customers.”— (Ganeshan and Harrison, 1995). So, we can define supply chain management as the things we do to influence the behavior of the supply chain and get the results we want. Some definitions of supply chain management are: • “The systemic, strategic coordination of the traditional business functions and the tactics across these business functions within a particular company and across businesses within the supply chain, for the purposes of improving the long-term performance of the individual companies and the supply chain as a whole” (Mentzer et al , 2001). “Supply chain management is the coordination of production, inventory, sourcing, transportation and pricing among the participants in a supply chain to achieve the superior value for the market being served.”—in my words. There is a difference between the concept of supply chain management and the concept of logistics management. Logistics typically refers to those physical

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