Supply chain management terms

Generally the higher the production output of the firm, the lower the unit cost of their product will be. Besides output volume, the speed of production will determine the lead time from manufacture to delivery. High productivity will enable manufacturing firms to achieve shorter production cycles which equates to better competitiveness in their respective markets. Capacity management will determine how efficient the manufacturer will be in producing its goods. Over capacity will result in increased wastage and costs while under capacity will see the firm lose certain profits that it should gain. Thus manufacturers needs to carefully consider the type and amount of capacity needed for its production when doing its supply chain…

The Supply chain is described as a network of different companies producing, handling or distributing product. The supply chain comprises all the stages to get goods and services from the supplier to the customer. Mentzer and Gundlach (2010) elaborate by stating that given the significance of supply chain activities to the firm as a whole, it stands to reason that the supply chain cannot be managed effectively in isolation. Supply Chain Management needs to be considered in nearly all elements of…

The concept advocates for the provision of legal contracts or terms among the employees or suppliers that facilitate the buying process within an environment. Therefore, business organizations should make recognized employment relationships. The relationships entail the provision of a particular clarity regarding wages and the duration of the contract offered by the organization. An ethical procurement advocates for the improvement of the health and the safety of the buyers and other…

Customer supply chain management is defined as the process of products and services flow from suppliers to retailers and finally to customers. It is also a process for information flow in both directions backwards and forward through the supply chain between all parties from consumers to suppliers which enable the replenishment of current product range or the newly developed ones required to meet the demands of the changing market. In TSC, the functions of supply chain unit are to plan, execute…

consumers by managing the activities from where the good is created to the point it is used. • SCM is a broader term, as its aims are much bigger than logistics. Logistics require the activities of a single firm whereas SCM is work done by number of organizations in order to achieve their respected goals. • The aim of Logistics is to satisfy its consumers whereas SCM works to gain competitive advantage among other firms. According to Stock & Lambert (2001) SCM “is the integration of key…

In William Walker’s book Supply chain architecture: a blueprint for networking the flow of material, information, and cash (2016), supply chain architecture provides the understanding, direction, and tools to apply the five APICS Principles of Supply Chain Management - Velocity, Variability, Vocalize, Visualize, and Value - to improve a company 's supply chain network competitiveness. According to Roy, Anciaux, Monteiro and Ouzizi (2004), the supply chain is viewed as a set of tiers…

all running, there are those involved in the world of supply chain and operations that strive daily to match the pace of a world that fails to ever slow down. With new technologies driving new trends, it is mind-boggling to even being to consider the complexities that go on with supply chain and sustaining operations. That is why we must start by looking at the basics of supply chain management and operations management. History of Supply Chain What is supply chain? This is a term that,…

Purchasing and material management have evolved over the years and there are many roles we play as supply chain managers. One of your roles as a supply chain managers be the ability to negotiate. Accounting to Monzcka (p. 480) “we define negotiation as a process of formal communication, either face-to-face or via electronic means, where two or more people, groups or organizations come together to seek mutual agreement about an issue or issues”. Negotiation is a skill that takes some time to…

only be achieved with a high-quality operations management system. “Operations management is the management of processes that create goods and/or services,” (Stevenson, 2009, p. 4) and is the engine that keeps a company running. The scope of operations management is broad and includes many interconnected functions (Stevenson, 2009). However, “the primary goal of operations management is to match supply to demand” (Stevenson, 2009, p. 72). While it is difficult to rank the importance of the…

Supply chain management is an emerging avenue for competitive advantage between companies. It includes all the activities which are integrated to produce a smooth flow of operation efficiency. It does not only preserve the time and value of the product but also makes the costumers satisfied. I am personally inclined towards the supply chain management because of immense opportunities and future prospects. Importance of supply chain management is not only being felt in industries and satisfying…