Sunday, 23 December 2018

Supplier chain management (SCM)

The supplier chain management Is set of approaches utilize to efficiently integrate suppliers, manufacturers, warehouse and stores. So that merchandise is produce and distribute at the right quantities. To the right locations and at the right time. In order to minimize system wide cost while satisfying service level requirements.

SCM Is the integration and management of supply chain organization and activities through cooperative organization relationship, effective business process. Even and high levels of information sharing to create high-performing value systems. Tthat provide member organizations a sustainable competitive advantage.

There are 3 things to consider:

Objectives of SCM

The objective of the SCM was to do the effectiveness and efficiency of the starting of suppliers, manufacturers, warehouse and stores. The lack of coordination between the related parties will result in considerable losses. One of the impact that often occurs is the "Bullwhip effect".

SCM has impact on cost control.

This happens because of a lack of coordination in the exchange of information between the retail stores, distributors and companies. On one side when the managers of retail stores saw an increase in request from the consumer a number of 100 units of the 100 units. It will be a number of distributors arrest 500 units and will catch increase the request of 2500 units. If we pay attention to the amount of information. That can be up to 100 party company like a snowball that floundering from the top to the bottom are getting increasingly bigger. And this will become even more chaotic when the fulfillment of the needs was arrest at a time that has been running for quite a while.

The SCM has an important role in improving the quality of service to our customer.

Within this adult desire faster customer experience change. This can we see from the variety of existing products in the market. This makes the company should be able to organize them well supplies that own the company. Due to the changing amount of demand for a particular product will make changes. To company policy for supplies erroneous, in this them is determining the level of booking again.

Supply Chain Management talks about how to arrange the supply of the goods to the company. However, the SCM is not just talking about the supply of goods are simple. The SCM talks about ways to integrate the supply chain of goods until freight distribution to end customers. This is something that is very complex, because so many parties involve in the journey of the supplier, distributor of the company, right down to the end user.

In this article: "Supply Chain Management: An opportunity for says with respect to the industrial world: "

The increasing need of industry to compete with its products in the global market, across-the-Board cost, quality and the service dimension. It has driven the need to develop logistic systems more efficient than those traditionally self-employ."

So it can be concluding that a good inventory systems are increasingly need in the global competition.

The main players in the Supply Chain Management (SCM)

Supply Chain shows a long chain that started from the supplier to the customer. Where the existence of an entity called the involvement. The players in this context in the network a very complex supply chain. The following is the major players who are involved in the supply chain:

Supplier (1 chain)

Chain in supply chain starts from here, which is the source that provide the first ingredient. Where the chain of distribution of goods will be start. The first material here could be in the form of raw materials, auxiliary materials, raw materials, spare parts or merchandise.

Supplier-Manufacturer (1-2 chain)

The chain of first last follow by a chain of two, i.e. a manufacturer which convert or completed goods (finishing). The second chain of relationships that already have the potential to do the saving. For example, saving on inventory carrying cost by developing the concept of supplier partnering.

Supplier-Manufacturer-Distribution (1-2-3 chain)

In this phase the goods so produced is channel to the customers. Which typically uses the services of a distributor or a wholesaler who is a major trader in the amount of large.

Supplier-Manufacturer-Distribution-Retail Outlets (1-2-3-4 chain)

From large traders last items transmitted to store retailers (retail outlets). Although there are some factories that sell goods directly to customer production results. But on a relative basis the amount is not much and mostly use the pattern as above.

Supplier-Manufacturer-Distribution-Retail Outlets-Customer (1-2-3-4-5 chain).

Our customer is the last in the chain of supply chain management this context as end-users.

Barriers in Supply Chain Management (SCM)

SCM is something very complex, where many of the obstacles encounter in its implementation. So that in its implementation is indeed need a design phase until the start stage the stage of evaluation and continuous improvement. In addition the implementation of SCM requires support from various parties ranging from internal in this entire top management and external in this case the entire existing partner. The following is the constraints that will be experience in the implementation of SCM's increasingly strengthen. The argument that the implementation of SCM does require the support of the various parties:

Increasing Variety of Products.

Now consumers are spoiled by the manufacturer, as it is increasingly we see various types of existing products in the market. This also we see company’s strategies always focus on the customer (customer oriented). If in the past the manufacturers do a strategy by doing Division segment at the customer. Then now more pamper consumers again with a toss of the product according to the wishes of each individual not according to the wishes of a particular segment. The large number of product types and quantities of the uncertain of the respective product manufacturers make increasingly overwhelmed in satisfying the wishes of consumers.

Decreasing Product Life Cycles.

Decreasing life cycle of a product makes the company the more hassles in regulating the supply of the goods, because the strategy for regulating the supply of particular goods, the company takes a certain well. Life cycle of a product is defined as the age of the product market.

The Increasingly Demand of Customer.

Supply chain management attempted to set (manage) increased rapidly, as is now increasingly demanding fulfillment of customer requests quickly even though the request was very abrupt and not standard products (customize).

Fragmentation of Supply Chain Ownership.

This illustrates the supply chain involves many parties have their respective interests, so it is creating Supply chain management is increasingly complicated and complex.


Globalization is making the supply chain more elaborate and complex because of the parties involved in the supply chain that includes parties in different countries that may have a location in various corners of the world.

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