Supply Chain Management Value Of Supply Chains

In today’s competitive business world, the best companies have discovered a powerful new source which encompasses on all the integrated activities that bring the product to the market and create satisfied customers and is called “Supply-Chain Management”.

Supply management can be studied as both an instant field of practice and forming academic domain (Storey, Emberson, Godsell, & Harrison, 2006). It was eventually about influencing behavior in particular directions and in particular ways. The fundamental logics, drivers, enablers and barriers asset and exact close attention in supply management. Manufacturers, retailers, suppliers, and wholesalers are the members in supply chain. Supply chain management (SCM) is normally applying in integrated wholesaling and retail businesses (Wisner & Tan, 2000). SCM is comprehensiveness with logistics and physical distribution functions with reducing lead time of delivery. It is a comprehensive philosophy intent on management’s purpose to sustain or establish competitiveness in a quickly growing environment, through more able distribution, and purchasing activities (Cooper & Ellram, 1993; Giunipero &

Supply Chain Management: An International Journal, Volume 7, Number 5, 2002, pp. 271 – 282;

Supply chains manage the movement of products from the acquisition of raw materials through production and finally distribution to the end user. A properly designed supply chain can create many opportunities to drive down cost and increase revenue opportunities. In order to create a supply chain that is sustainable and flexible it is necessary to identify and align company goals and initiatives with the manufacturing and distribution of products.

Effective supply chain management can provide an important competitive advantage for a business marketer, resulting in improved communication and involvement among members of the chain, increased motivation, and decreased costs. Tracking the movement of and demand for components used to manufacture a product across a variety of potential and actual suppliers, provides insight and the ability to respond instantly to shortages, surpluses, and changes in market conditions. It seeks to optimize production, decrease manufacturing time, minimize inventory, streamline order fulfillment, and reduce cost.

Supply chain management has become an important issue in today’s business world, it is used by many companies to improve their competitive advantage (Vickery, Calantone & Droge, 1999). In a supply chain, the customer is the most impart part and seeing that every company seeks to please their customers, supply chain management therefore helps companies in satisfying the needs of the customer which involves the management of various aspects such as manufacturing, suppliers, transportation, information and retailers to deliver value to the customers (Chopra & Meindl, 2007).

The average company spends nearly half of every dollar it earns on production needs—goods and services it needs from external suppliers to keep producing. A supply chain consists of all parties involved, directly or indirectly, in the procurement of a product or raw material. Supply chain management (SCM) involves the management of information flows between and among stages in a supply chain to maximize total supply chain effectiveness and profitability.

Supply chain is one of the pivotal for any business. All successful organization whether they are profit, non -profit, government, public service rely heavily on the supply chain management. A supply chain can bring a competitive advantage and benefits to any company however there are many risk associated with supply chain which

Supply chains include the end-to-end flow of information, goods and products, and money. That is why the way they are managed powerfully affects an organization's competitiveness in such areas as merchandise cost, working capital requirements, rapidity to market, and service perception, among others. The proper arrangement of the supply chain with business strategy is necessary to guarantee a high level of business performance. There are many benefits of the supply chain strategy in terms of time, cost, quality, and flexibility ability groups. Supply chain strategy reduces useless processes, in return speeds the production process. It also focuses on delivering a product or a service to consumers at the lowest possible cost without losing quality.

As we know that as far as the concept of global market exist it has gone beyond border and the ways of managing demand and supply are changing. In order to fulfill the basic purpose of have low production cost the companies are looking for set up in such countries where manufacturing and production cost be lowered by getting cheap labor and raw material. It is the process of acquiring the raw material and vendor to provide the right quantity, quality at right price and at right time calls for a dynamic

As supply chains have moved from a cost focus to a customer focus and now currently to a strategic focus, the need to think strategically about the supply chain has never been more important. The success of a strategy is only as good as the company’s ability to fully and properly execute it. A great supply chain strategy, linked with operational excellence, can provide success for not only the company in question but also its partners and customers.

Supply chain management is an integral component of operation management and has a direct effect on how successfully organizations function. The purpose of supply chain management is to remove communication barriers and eliminate redundancies by coordinating, monitoring, and controlling processes within an organization. Identifying the components of the supply chain, facilitating better decision-making, creating improved communication, and identifying weak links in the chain causing bottlenecks in an organization are crucial to supply chain integration. There are three principle elements of supply chain integration: management of information and financial flows, inventory management, and management of relationships of

This paper describes the challenges of supply chains management. It examines the various areas that contribute to and organization 's strategic planning operations to enhance its profitability. It identifies the various elements of value to supply chain operations.

Supply chain management refers to management of the movement of goods and services from one point to another. It also involves storage and flow of raw materials and manufactured products from the point of production to the point of consumption. There are several concepts and theories in the field of supply chain management. This paper seeks to explore various theories and concepts of supply chain management and how such theories impact various industries.

Supply chain management, is the dynamic management for supply chain exercises on boost client quality and accomplish a maintainable aggressive advantage. It speaks to a cognizant exertion toward the supply chain