Part 1 Supply Chain Management and its tasks

Supply chain management can be defined as the management of the entire network of supply from original source through to meeting the needs of the end-consumer. In other words it is design, planning, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, synchronizing supply with demand and measuring performance globally.

This definition is concerned not just with immediate (непосредственный) suppliers (e.g. of components) and the immediate customer (e.g. a wholesaler) but with all firms involved in all processes from extraction to the end-customer, which is illustrated below in Figure 1. By sharing data ‘upstream’ (with a company's suppliers) and ‘downstream’ (with a company's clients), SCM helps to improve the time-to-market of products, to reduce costs, and it allows all parties in the supply chain to manage current resources and plan for future needs in a more efficient way.

The SCM approach requires that the organization should be concerned with all upstream and all downstream firms, however distant and indirect the relationship.

Supply chain managementdeals with the task of managing three key flows: material, information and financial. Material flow includes the movement of goods from a supplier to a customer, as well as customer returns. Information flow involves transmitting orders and updating the status of delivery. Financial flow consists of credit terms, payments, payment schedules, etc.

Part 2 The component activities of supply chain management (SCM).

Supply chain managementfocuses on the following activities:

Purchase and supply of materials, components and information. This means that there are important SCM decisions to be made in terms of the nature of relationships, the number of supply firms (i.e. multiple or single sourcing) and whether to source in-house(привлекать ресурсы) or from an external supplier.

Stock control. Efficient and effective SCM is essential if just-in-time methods are to be employed.

Distribution strategy. Strategic decisions have to be made about the nature of distribution channels (direct or indirect, short or long, intensive or selective). These downstream activities are a key element in marketing, especially for perishable products — both physically perishable, such as strawberries, and fashion affected, such as swimwear.

Physical distribution. This includes both storage and transportation.

Part 3 Why manage the supply chain

Management of the complete chain can provide substantial benefits in satisfying the end-customer.

Firstly, all firms in the chain need to add value to output, as shown in Figure 2. All firms upstream in the supply chain have an interest in competitiveness, quality, waste minimization and overall profitability(общая рентабильность). Understanding these linkages also helps in understanding that suppliers and distributors are among every organization's stakeholders.

Secondly, appropriate management of the supply chain produces benefits in terms of a reduction in stocks. The failure of supply patterns to match demand patterns leads to the accumulation of stocks at various stages in the chain, with shortages and delay at other stages. SCM seeks to overcome these problems by the identification of bottlenecks (недостатки) and improvements in both forecasting and in the flow of information.

One more reason for managing the supply chain is to avoid the so called ‘ bullwhip effect’. The bullwhip effect on the supply chain occurs when changes in consumer demand causes the companies in a supply chain to order more goods to meet the new demand. The bullwhip effect usually flows up the supply chain, starting with the retailer, wholesaler, distributor, manufacturer and then the raw materials supplier (see Figure 3). This occurs because the demand for goods is based on demand forecasts from companies, rather than actual consumer demand.

SCM also produces benefits in terms of time-saving. This can result in increased customer satisfaction, increased flexibility and increased speed at which new products get to the market. In other words, SCM is an essential element in another aspect of lean production, namely time-based competition.

Part 4 Partnership relationships in SCM.

Traditionally, the supplier-buyer relationship is seen as competitive and even confrontational. The supplier seeks the highest price whilst the buyer seeks the lowest price. By contrast, SCM encourages joint problem-solving to improve quality and thus reduce waste. Partnership supply relationships are long-term co-operative agreements for the joint accomplishment of goals. Features of a partnership agreement are:

- the sharing of success

- multiple points of contact

- long-term commitments

- joint learning

- information sharing

- joint problem-solving

- and, most important of all, trust

This type of relationship is essential in successful supply chain management. As Marks and Spencer has demonstrated in recent years, firms are taking huge risks with their future if they jeopardize the bonds that link them to their suppliers.

Дата добавления: 2015-10-30