Supply chain management, as the name suggests, is about managing. It's essentially a network of logistics. It includes the planning and management for all activities involved in different stages, such as sourcing and procuring, conversion, and logistics management. It also includes a section on managing supplier relationships, supply chain transactions and controlling business processes related to projects. It focuses on the following main issues:
- Distribution Network Configuration
- Distribution Strategy
- Trade-offs in Logistical Activities
- Information
- Inventory Management
- Cash Flow
The system is responsible for the movement and flow of materials, data and information across different supply chains. The system controls and modulates the flow, which is bidirectional. It seems to operate on three levels:
- Strategic Level
- Tactical Level
- Operational Level
The strategic level deals with decisions like where to manufacture products and where to purchase them from. It also manages the product's life cycle. Supply Chain Management Specialization is also responsible for managing the product's life cycle. This section also manages strategic partnerships with suppliers, customers and distributors. This is a long-term operation that requires a commitment of resources. The strategic level deals deal with information technology chain operations.
The tactical level is responsible for procuring contracts and making decisions about purchases. The tactical level deals with production decisions, including schedules, contracts and planning. The tactical level deals with transportation strategies, such as frequency, routes, contracting, and inventory decisions, which include all decisions about inventory, customer demand, and habits.
Operational level covers most operations that are performed daily, such as production and distribution planning. It also includes all nodes involved in the supply chain network. Each manufacturing facility has its own process schedule. The operational level addresses the problems. Supply Chain Management covers all aspects of Supply Chain Management, including sourcing planning, inbound and outbound operations as well as order promising, inventory management, production operations and short-dated inventory.
These are the major impacts and movements that the SCM has seen over the evolution of this strategy:
- Creation
- Integration
- Globalization
- Specialization: Outsourced manufacturing and distribution
- Specialization: Supply chain management as a service
- Supply Chain Management 2.0
It and They are built on a variety of processes and functions
- Customer Relationship Management
- Customer Service Management
- Demand Management Style
- Order Fulfilment
- Manufacturing Flow Management
- Supplier Relationship Management
- Product Development Management
- Returns Management
It consists of product flow as well as information flow. This is crucial for maintaining a smooth operation of your company.