Supply Chain Management:
Supply chain management is a set of processes which helps organizations develop and deliver products. The supply chain shows the complex relationships of an organization with its trading partners through whom it sources manufactures products, materials, and delivers products or services to the customers. Generally, the supply chain comprises of multiple companies working together as a single entity with complete information transparency and accountability among themselves. Through the supply chain, the flow of information, material, and financial information between the business entities is coordinated. The supply chain links all the activities in the procurement, transformation, and storage of raw materials and intermediate products, and the sale of finished goods. The facilities required for procurement, transformation, storage and sales are interconnected by transportation links in the product flow. The product flow describes the processes in transforming raw material into finished goods. The information flow describes the future requirements (raw materials, products and tools, and equipment) and order delivery status.
Supply chain management
In the late 1980s, organizations were looking for ways and means to improve their process efficiency, and revamped their internal processes for this purpose. After making their internal processes efficient, they needed to make their external processes efficient so that they can reduce time to market, and distribution costs. For this, they had to redefine their relationship with their suppliers, retailers, distributors, and customers. An effective relationship with these entities increases the need for information sharing and makes them mutually dependent. This causes a paradigm shift in competition from manufacturer vs. manufacturer to supply chain vs. supply chain.
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