Business Management, ERP
  Home Business Books Career Tips ERP Books Internet Business ERP Self Help Articles
 
Review Section
Oracle
SAP
NetSuite
Infor
Aplicor
Sage
Microsoft
Epicor
Dynamics AX
Dynamics CRM
Dynamics GP
Dynamics NAV
Dynamics SL
mySAP
Sage MAS 90
SAP Business One
Intacct
Tally
 
Management Section
What is Six Sigma?
Six Sigma Methodology
Lean Six Sigma
Process of Six Sigma
Six Sigma Benefits
Quality Improvement
Implementing JIT
On The Job Training
Training Guidelines
Effective Communication
Global Communication
Improve Interpersonal Skills
Leadership Qualities
Leadership
Leadership Activities
Charismatic Leadership
Leadership Failure
Leadership Traits
Maslow Hierarchy
Entrepreneur Management
Office Time Management
Time Management Tips
Boston (BCG) Matrix
Product Life Cycle
BPR
Problem Solving Tips
Negotiation Tips
Risk Management
Strategic Planning
Change Management
Workplace Strategy
E-Commerce Importance
Risk Analysis
 
Career Section
Resume Writing
Resume Cover Letter
Job Interview Questions
Become Web Designer
Start Doing Freelance Work
Self Employment Ideas
Become an Entrepreneur
Start an eBay Affiliate
Work as a Freelance Writer
Become a Webmaster
 
Feng Shui Section
What Is Feng Shui
Feng Shui Tips
For Wealth
For Office
For Prosperity
For Career
Remedies
Principles
Business Growth
Colors and Directions
For Good Luck
Office Interiors
Office Desk
Office Website
For Job
Home Office
 

What is Supply Chain Management?

SocialTwist Tell-a-Friend


Supply Chain Management (SCM)

Supply Chain Management (SCM) is the management of materials, information, and finances processes form supplier to manufacturer to customer. Some supply chains are very simple and some are complicated. The complexity of the SCM is depending on the size of the company and numbers of items that are manufactured.

Supply chain management involves coordinating and integrating product flow, information flow and finance flow within and among companies. The main purpose of it is to reduce inventory and reduce process time of supply.

Customer starts the chain of cycle when they make a decision to purchase a product from a company. After placing the order by customer, planning department will create a production plan to produce the ordered products. To execute production plan, company will have to purchase the raw materials needed. Purchase department receives an indent of raw materials required by the production department to complete the orders. Purchase department sends purchase orders to selected vendors to deliver the desired raw materials to the manufacturing site on or before the required date. After that raw materials are received from the vendors, checked for necessary quality and moved into the warehouse. After QC (Quality Check) manufacturer will ask for replacement if any defect is found in raw materials.



Supplier will then send replacement if required, and also send an invoice to the company for the delivered items. Raw materials are stored in inventory until they are required by the production department. Production department send requisition to inventory as per production plan, the raw materials are moved from inventory to the production area. After finishing the production, products are stored in inventory to deliver the customer.

When the finished product arrives in the inventory, the dispatch department determines the most efficient method to dispatch the products to customer. When the products are received by the customer, the company will send an invoice for the delivered products.

Above processes are called a complete supply chain and to manage these process called SCM. This can be managed by supply chain management software also.





 Read Related Articles

Product Life Cycle Development
Quality Improvement in Products and Services
Benchmarking - Best Practice, Implementing JIT
What is Change Management?

SocialTwist Tell-a-Friend
 
Subscribe to my feed
Join our Newsletter for FREE Entrepreneur Tips!
Enter your email address:

ERP Category

Definition  

History  
 
 
 
 
 
 
Features and Functions  
Fundamentals  
Software Selection  
Vendor Selection  
For SME  
For Manufacturing  
Low Cost Software  
Implementation Strategy  
Implementation Obstacles  
Web Based ERP  
Lean Manufacturing  
Failures and Prevention  
 
 
 
Implementation Best Practices  
Implementation Planning  
Implementation Risk Factors  
Effects on SME  
SAP HR  
SAP B1  
Microsoft Navision  
Infor Syteline  
SAP R/3 Architecture  
Future of ERP  
SAP B1 in India  
Books  
Myths and Facts  
FAQs  
Process Manufacturing  
CRM Trends  
Best CRM Practices  
CRM for FMCG  
What is SCM  
For Construction Firm  
For Garment Firm  
Internet Business

Home Business Ideas  
 
 
 
 
 
Make Money with Clickbank  
Niche Marketing  
Affiliate Marketing  
Work At Home  
Health Care Opportunities  
Entrepreneur Moms  
Twitter Marketing  
Web Based Opportunities  
Teen Entrepreneur  
  Home Business Books Career Tips ERP Books Internet Business ERP Self Help Articles
Business Communication Entrepreneur Ideas Self Employment Accounting Software
ERP Companies ERP Consultant ERP Job Training Software-as-a-service
SAP Courses Small Business Ideas GAP Analysis Sitemap XML (1, 2)


Copyright © NickMutt.com All Rights Reserved.