Supply Chain Management Essay Example | Topics and Well Written Essays - 1250 words

Supply Chain Management - Essay usageIt is always necessary that the pedigree does not get too out of hands and is not short(p) of the predicted demand at the same time. Definition Supply Chain Management refers to the entire process and stages that go in the supply of goods and services. To coordinate the production and market supply. It refers to the management and integration of all performances indoors and outside of the organization to maintain the entire supply chain, like production of goods, entire process of inventory stocking, procurement of raw materials from various suppliers outside the organization, transportation and distribution of raw and readymade goods in a toll effective manner, so as to ensure the overall cost of production can be unbroken low, in turn resulting higher profit margins. In addition to the scope mentioned as above, one of the or so important functions of the supply chain management is to draw business boundaries and define the scope of the b usiness, which will put up an organization to analyze and understand the feasibility of carrying out a certain production function in-house or outsourcing the stage for better results. According to Mentzer, et al Supply chain Management (SCM) is defined as the systematic, strategic coordination of the traditional business functions and the tactics crossways these business functions within a particular company and across businesses within the supply chain, for the purpose of improving the long-term performance of the individual companies and the supply chain as a whole (Ballou 5). Functions The main roles of supply chain management can be understood by dividing them into the following heads Identifying the Scope and Feasibility Demand and Supply/Adequate Inventory Logistics Procuring and purchasing Production gross sales The primary role of supply chain management is to observe and analyze the existing operation calendar method of birth control of an organization and then define the scope of the various stages and aspects of in-house production. This is done to understand the feasibility of outsourcing some stages of operation to a third party in order to keep the cost low, get better forest products and get the finished product in a limited time, so as to ensure unagitated running of the organization. Demand and Supply as discussed are at the core of any business specify its market existence and sustenance. The key is to represent the current market demand and have adequate stocks to meet any sudden changes in the demand curve, yet ensuring that the stock inventory goes too high that it starts touch the overall cost of production. Obtaining, storing, transporting and then distributing are the core functions in the logistics function of the supply chain management. transmit and transporting the raw material to the production site and then storing the finished product in the warehouses to finally acquire the products distributed to be consumed directl y by the consumer are some of the functions of the logistics that in turn have a major(ip) affect on all the other stages in the entire supply chain management cycle. Procuring and pur