The Supply Chain Management ( Scm )

1080 Words Sep 13th, 2016 5 Pages
Introduction When thinking about the idea of Supply Chain Management (SCM) there are two core ideas that can be taken into account. Nearly every product that is obtained by a consumer is done so through the efforts of multiple companies working collaboratively. Secondly, many companies within these systems have historically been focused only on what role they play individually. SCM strives to bridge the gap between companies and organizations by providing effective management of supply chain activities in a way that maximizes profitability and consumer satisfaction. When attempting to describe an effective SCM system many aspects of the supply chain have to be addressed. The Supply Chain Management Review presents seven principles of effective SCM. But implementing these practices is not enough. It is also necessary to evaluate these practices to ensure that they are benefiting the companies involved and make vital business decisions.
Seven Principles Principle One. Most businesses train their employees to focus on the need of the customers. This should be directly reflected in the supply chain as well. The first principle states that customers should be segmented by their service needs and the supply chain should be adapted to accommodate these needs. Doing this allows companies to offer tailored services to customers which in turn has a greater potential to ensure profitability (Anderson, Britt & Favre, 1993). Principle Two. In some companies the logistics networks is…
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