Supply chain management is the management and coordination of a product’s supply chain for the purpose of increasing efficiency and profitability. The term supply chain management was coined by a consultant named Keith Oliver of the strategy consulting firm Booz Allen Hamilton in 1982. It combines processes of planning, implementing, and controlling the operations of the supply chain with the purpose of satisfying the customer requirements as efficiently as possible. It attempts to control or link the production, shipment and distribution of a product. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company’s product purchasers. It integrates supply and
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This leads to theory of DRIFT. The idea behind DRIFT is that management wants all of the processes that make up the JIT philosophy to be done correctly and efficiently so there are no delays in the production process. The importance of DRIFT arises from the fact that a JIT production system is heavily reliant on the movement of parts and information along the production process. Subsequently, if there is the slightest error at one of the stages of production the whole production process will be affected. By “doing it right the first time” a company is able to run a smooth production process without needing to carry excessive inventory and greatly diminish the costs of production.
This is where the logistics of the supply chain management comes to work. Logistics is the overall management of the way resources are moved to the areas where they are required. This term originated in a military context, referring to how personnel acquire, transport and store supplies and equipment. In the business community, the term is used to refer to how resources are acquired, transported and stored along the supply chain. By having an efficient supply chain and proper logistical procedures, a company can cut costs and increase efficiency.
The supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can be created and