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marketraisecorp · Joined: 01 Aug 2008 Posts: 2

Supply chain management (SCM)is the process of initial stage planning, implementing and then controlling the operations or functions of the supply chain as resourcefully as possible. Supply chain management provides the flow of raw material through inventory, continuous work in progress and supply of demanded product.

Small history of SCM is –“the term supply chain management was coined by consultant, strategy consulting firm Booz Allen Hamilton in1982.”
Supply chain management (SCM) is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers.

Five major components of SCM-

Plan-This is the strategic portion of SCM. You need a strategy for managing all the resources that gotoward meeting customer demand for your product or service. A big piece of planning is developing a setof metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.

Source-Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships

Make-This is the manufacturing step. Schedule the activities necessary for production, testing,packaging and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality levels, production output and worker productivity.

Deliver-This is the part that many insiders refer to as logistics. Coordinate the receipt of orders fromcustomers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.

Return-The problem part of the supply chain. Create a network for receiving defective and excessproducts back from customers and supporting customers who have problems with delivered products.

The Best Example of SCM is Mumbai’s Dabbawalas-(Lunch Box suppliers).
Management Principles Derived..
• Team work
• Time management
• Innovation
• Customer relationship management
• 6 Sigma
• Logistics And Supply chain management
For more information you can visit there site Mydabbawala.com.

Marketraise
www.marketraise.com