EXTENDING THE ORGANIZATION - SUPPLY CHAIN MANAGEMENT

Hello there mate. For this post, I will talk about supply chain management. But first, what is a supply chain? Supply chain consists of all parties involved, directly or indirectly, in the procurement of product or raw material. While supply chain management or usually called 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 has 3 main links,which is : 

1. Materials flow at all levels.

2. Transformation of materials into semi-finished and finished products.

3. Distribution of products to customers and their downstream customers at all levels.

Adding to that, we also need to know the 5 basic supply chain management components, which is:

• Plan - Must have plan for managing all the resources.
• Source - Must choose reliable supplier that deliver goods and services for making products.
• Make - Companies manufacture their products or services.
• Deliver - Also known as logistics.
• Return - Companies must create network for receiving defective and excess products.

 

Besides that,we should be aware of the four factors driving supply chain management. These namely includes visibility which is the ability to view all areas up and down the supply chain. Secondly, there should be consumer behavior, which has changed the way businesses compete. Adding to that is competition and speed. Speed here includes the company's ability to satisfy continually efficiently, accurately and quickly.

This post is related to chapter 10 of MGT300. I hope u guys can gain knowledge from this post. Thanks. :)