This article is an easy guide for Techno-functional consultant to understand SCM from Implementation as well as Oracle Application product Prospective.Lets start the topic with some of high points of earlier post .
- As mention in earlier post a Supply Chain is a network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product.
- Make a note a supply chain is product specific, not company specific
- Supply chain management (SCM) is a systematic approach to manage the entire flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.
- Moreover , SCM involves the flows of material, information and finance in a network consisting of customers,suppliers, manufacturers, and distributors.
- You should be clear with Flow that SCM can manage :
- The flow of actual materials, the top middle bars
- From suppliers : flows of raw materials, intermediate products, finished goods
- Reverse material flows : returns, repairs, servicing, recycling, disposal
- and the information flows
- From suppliers : manufacturing capacity, delivery schedules, promotions they have going
- Reverse flows : sales, orders, inventory, quality, promotions
- And finally, there are financial flows:
- From suppliers: Credits, consignment, payment terms, invoice
- Reverse Flows : payments, consignment
- The flow of actual materials, the top middle bars
- Supply Chain Management is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer.
- SCM has three primary goals: Reduce inventory, increase the transaction speed by exchanging data in real-time, and increase sales by implementing customer requirements more efficiently
- The need for SCM is because effective Supply Chain Mgt. is the next logical step towards increased profits and market share.
- Supply Chain Management (SCM) in line manager prospective is "let's-keep-things-moving-efficiently".
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