Supply Chain Management: The Philosophy Of Supply Chain Management

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Supply Chain Management (SCM) represents the end to end value chain of a business from production to after-sales service. According to Schulz, a well-managed supply chain should be market focused, stating that the supply chain should strongly represent the market needs and “what solutions consumers are looking for, not the product we are trying to sell them”. However is the philosophy of SCM merely just a new supply chain thinking approach to older existing SCM practice? For example, Quality Management which is deeply rooted in the concept of SCM although not in self-new, has evolved over time, and is based upon the concept of having total commitment to everyone is the supply chain to deliver quality service/products to both the internal and…show more content…
The key benefit of this is to deliver superior value to the target market and while doing so, sustain competitive advantage in the market place. Marketers tend to focus on the customer end of the value network , developing important customer relationship management practices , with the view to incorporating the needs of the customer into the product /service benefits. However managing the supply chain or value network requires increased financial and human resources and businesses need to be confident that they will receive a future return on their investment . This is particularly more relevant to the development of smaller enterprises due to their resource constraints. Supply chain management (SCM) is based on the philosophy that firms operating in a supply chain are oriented to the provision of goods and services for the ‘final customer’ (Lambert and Cooper, 2000) . The literature strongly suggests that that cohesive collaboration in the supply chain can provide important benefits such as added value, efficiencies and client satisfaction (Stock, Boyer and Harmon,
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