Supply Chain Management and Lean Production

1949 Words8 Pages
Abstract
The system of interconnected businesses used to push a product from supplier to consumer is defined as a supply chain. Supply chain management focuses on managing the supply chain in an effort to improve the quality and time it requires to manufacture a product. In addition to implementing supply chain management, a helpful lean production practice called Just-in-time can be used to remove any waste present along the supply chain. The marriage of lean production and supply chain management creates lean supply chain management, which provides a much leaner and more economical supply chain for the product to flow through. Supply Chain Management and Lean Production Much uncertainty about what supply chain management
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Today, management of the supply chain can be completed through the use of supply chain management software, such as E2Open. Supply chain management allows a company to document and track data pertaining to the supply chain.
Benefits of the supply chain management
Supply chain management places importance on managing the customer relationship, as well as the supplier relationship. By effectively managing these relationships, the company can become more competitive, while increasing the quality of the product to the customer. Placing emphasis on the supplier relationship and the businesses along the supply chain increases product efficiency and quality. The importance placed on the customer relationship focuses on the demands and needs of the customer. Through effective communication within the relationships along the supply chain, a basic balance of supply and demand is established.
The eight SCM processes The presence of standard processes within an organization assists in optimizing the product flow (Lambert 2008). The implementation of standard processes allows each area on the supply chain to share common knowledge and information in an effort to have the all supply chain participants strive to achieve a common goal. These processes place emphasis on the business as a whole, instead of only focusing on the end product. Lambert (2008) identifies the eight supply chain management processes as being:
• Customer
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