Supply chain management SCM

Name ID Group Professor

Aly Hossam Abdelmonem 20190108 F Abdullah Adel
Abdelrahman Mohammed
20194332 G Ibrahim Eldosoky
Abdallah

Course: Management Information System MIS 201

Table of Contents
Introduction.................................................................................................................................................4
Keywords................................................................................................................................................5
Concept of supply chain management.....................................................................................................5
Definition of supply chain management:.....................................................................................................5
Strategic Goals and Objectives in Supply Chain Management....................................................................5
Ensuring Efficiency Within Your Operation...........................................................................................5
Optimizing Transportation and Logistics................................................................................................5
Focusing on Quality Improvement..........................................................................................................5
Benefits of strategic SCM........................................................................................................................5
Advanced Planning and Scheduling (APS) software...............................................................................5
The Importance of Supply Chain Management...........................................................................................5
Boost Client Benefit................................................................................................................................5
Reduce Operating Costs..........................................................................................................................5
1- Diminishes Obtaining Taken a toll..............................................................................................5
2- Diminishes Generation Taken a toll.............................................................................................5
3- Diminishes Add up to Supply Chain Fetched..............................................................................5
Improve Financial Position......................................................................................................................5
1- Increments Benefit Use................................................................................................................5
2- Diminishes Settled Resources......................................................................................................5
3- Increases Cash Stream.................................................................................................................5
Components of supply chain management..................................................................................................5
Planning...................................................................................................................................................5
Sourcing..................................................................................................................................................5
Location...................................................................................................................................................5
Making....................................................................................................................................................5
Delivery...................................................................................................................................................5
Returns....................................................................................................................................................5
Functions of supply chain management.......................................................................................................5
Adjusting streams....................................................................................................................................5
Joining capacities....................................................................................................................................5
Planning forms........................................................................................................................................5
Designing complex frameworks..............................................................................................................5
 Managing assets......................................................................................................................................5
Impacts of climate change upon supply chain management........................................................................5
References...................................................................................................................................................5
Introduction
Supply Chain and Supply chain Management have played an important role in organizational productivity
and have attracted the attention of numerous scholars over the last few years. Academic literature review
shows a significant stream of Supply Chain (SC) and Supply Chain Management (SCM) in research
practices and theory.
Connecting and informing on Supply Chain, Supply Chain Management and distribution Management
characteristics have contributed to the Supply Chain integration. This integration has generated the
approach of extended corporate and the supply chain is nowadays manifested as the cooperative supply
chain across intercorporate borders to increase the value across of the whole supply chain. (Janvier-
James, 2012)

Keywords: Supply chain, Supply Chain Management, Supply chain management theories, Supply chain
management objective, performance, Efficiency measurements.
As a consequence of the liberalization and globalization of international trade, the procurement and
development factors the interdependence between suppliers and producers is strengthened by consumer
goods from destinations around the world. International Supply Chain Wholesalers.
The success of these marine supply chains has also become more successful. Crucial to the favorable
rivalry that has emerged in foreign markets through the abolition of the trade barrier (2006: Fourie, Y.).
The competitiveness of distribution in the Global markets that have evolved from the elimination of
barriers to trade (2006: Fourie, Y.).
The competitiveness of distribution in physical trade with the rest of the world is now important. For
progress and economic growth. The objective of this paper is to present the growth of supply chains and
Control of Supply Chains. It gives substantial concepts and analytical study of both the supply chain and
the supply chain. Management of the Supply Chain.

Concept of supply chain management

(Harjeet et al. 2016) Supply chain administration is basically the administration of transport or flow of
good(products) and services, integrating capacity, rack life, examination of products secured, and
products sold coordination’s, etc.
Supply chain management allows a difference in the organization and execution of a single organization's
numerous supply chain exercises to build up the organization's net confidence, determine the actual
market drift related to the demand and supply of certain goods or administrations, and synchronize it to
calculate the organization's execution. (Wibowo et al. 2017)
Supply Chain Management is the key business processes from end-user through original suppliers that
provides products, services, and information that add value for the customer and other stakeholders”.
(Desai et al. 2016) Supply chain administration (SCM) is characterized as the integration of key
commerce forms from end clients through unique providers that give items, administrations and data
which add value to clients and other partners. (Desai et al. 2017) SCM is the task of integrating
organizational units along a supply chain and coordinating materials, information and financial flows to
fulfill customer demands to improve the competitiveness of the supply chain as a whole.
Definition of supply chain management:
Harland (1996) The administration of a organize of interconnected businesses included in the ultimate
arrangement of item and service packages required by conclusion clients. Mentzer et al. (2001)
The orderly, key coordination of the conventional trade functions within a specific company and across
businesses inside the supply chain, for the purposes of improving the long-term execution of the
individual companies and the supply chain as an entire. Quinn (1997) All of those exercises related with
moving merchandise from the crude materials stage through to the conclusion client.

Strategic Goals and Objectives in Supply Chain Management

Knowledge of strategic goals and goals is key in operations and supply chain management when trying to
improve overall productivity and efficiency. It would also boost the overall bottom line and giving your
manufacturing operation massive financial change. Management of the supply chain relates to a
collaborative approach that allows goods or services to reach your customers on time, whether it be
another operation or individual customers.
In supply chain management, several objectives include helping you to gain a competitive advantage in
your marketplace, improving collaborative efficiency, optimizing logistics, and improving product
quality.
Overall, this will benefit your customers and could create brand loyalty and increased market share within
your industry. Therefore, within this blog we are going to discuss the strategic goals and objectives of
supply chain management and how they can benefit your overall operation and production facility.

Ensuring Efficiency Within Your Operation

Efficiency is, for obvious reasons, one of the most important aspects of supply chain management. It can
be a complex process to manage inventory, transport, and logistics effectively, but an overall
understanding of how to do it can greatly benefit your operation. It can be incredibly costly if your
company does not have an adequate ERP(enterprise resource planning), MRP (Material Requirements
Planning), or APS(Advanced Planning & Scheduling) systems. When manufacturers, wholesalers, and
retailers collaborate on a supply chain system, it is far much easier to maximize efficiency for your
operation.

Optimizing Transportation and Logistics

Optimizing transportation and logistics is another key component in supply chain management. Each
business is responsible for its role in the ordering, shipping, and transportation of goods within an
independent business environment. In this business model, due to poor timing and collaboration, the cost
is rather high.
Your process should "flow" with supply chain management and have suppliers, producers, wholesalers,
and retailers all on the same page at all times. With SCM, with any vendors or buyers you work with, you
can plan optimized transportation and logistics activities. Orders are automatically put into a system and
alert other facilities that are needed to fulfill this order.

Focusing on Quality Improvement

It is important to keep in mind that it is a goal shared by you and your supply chain partners to provide
consumers with the absolute best value. Product and service quality should be dramatically improved as
you are more connected with your partners. This can also apply to the development of quality functions
(QFD) and allows customers to tell you what is most important in your product or service, which will
save you cash down the road. You are creating a system within a collaborative supply chain where your
company and others within your supply chain are allowed to receive customer feedback. These
inefficiencies and disadvantages that are included in the feedback allow you to tackle any problems you
should concentrate on.

Benefits of strategic SCM

The most immediate benefits that businesses can expect from strategic SCM are lowered inventory risks
and costs, along with reductions in warehousing, distribution, and transportation costs. Over time firms
will also experience sustainable cost savings through increased productivity and streamlined business
processes in procurement and purchasing, order fulfillment, accounts receivable and payable, and
exception management. In the long term, the most significant benefits to businesses with advanced SCM
capabilities will be dramatically improved customer responsiveness, increased flexibility for changing
market conditions, improved customer service and satisfaction, increased customer retention, and more
effective marketing. Businesses can use SCM capabilities to manage demand as well as supply. Indeed,
the distinction between and demand chains seems increasingly arbitrary. (Laura Horvath)
(December,2001).

Advanced Planning and Scheduling (APS) software

Due to customer demand for increased product mix and quick delivery combined with downward cost
pressures, it has become a must for modern-day manufacturing operations.
In order to fill gaps where such systems lack flexibility and accuracy in planning and scheduling, APS
can be quickly integrated with an ERP/MRP program.
Advanced Planning and Scheduling (APS) helps to save time for planners while providing greater agility
to update ever-changing priorities, production schedules, and inventory plans.

 Create optimized schedules balancing production efficiency and delivery performance

 Maximize output on bottleneck resources to increase revenue
 Synchronize supply with demand to reduce inventories
 Provide company-wide visibility to capacity
 Enable scenario data-driven decision making
Advanced Planning and Scheduling (APS) software implementation will take your production activities
to the next level of production efficiency, taking advantage of the operational information you already
have in your ERP.

The Importance of Supply Chain Management

It is well known that supply chain management is an integral part of most businesses and is essential to
company success and customer satisfaction.

Boost Client Benefit

 Clients anticipate the proper item grouping and amount to be delivered.
 Customers anticipate products to be accessible at the proper location.
 Right Conveyance Time – Clients anticipate items to be conveyed on time
 Right After Deal Back – Clients anticipate items to be adjusted rapidly.
Reduce Operating Costs
1- Diminishes Obtaining Taken a toll – Retailers depend on supply chains to rapidly convey
costly items to dodge holding expensive inventories in stores any longer than vital. For example,
electronics stores require fast delivery of 60” flat-panel plasma HDTV’s to avoid high inventory
costs.
2- Diminishes Generation Taken a toll – Producers depend on supply chains to dependably
convey materials to gathering plants to maintain a strategic distance from fabric deficiencies that
would shut down generation. For example, an unexpected parts shipment delay that causes an
auto assembly plant shutdown can cost $20,000 per minute and millions of dollars per day in lost
wages.
3- Diminishes Add up to Supply Chain Fetched – Producers and retailers depend on supply
chain supervisors to plan systems that meet client benefit objectives at the slightest add up to
fetched. Effective supply chains empower a firm to be more competitive within the showcase put.
For example, Dell’s revolutionary computer supply chain approach involved making each
computer based on a specific customer order, then shipping the computer directly to the
customer. As a result, Dell was able to avoid having large computer inventories sitting in
warehouses and retail stores which saved millions of dollars. Also, Dell avoided carrying
computer inventories that could become technologically obsolete as computer technology
changed rapidly.

Improve Financial Position

1- Increments Benefit Use – Firms esteem supply chain directors since they offer assistance
control and diminish supply chain costs. This could result in sensational increments in firm
benefits.
2- Diminishes Settled Resources – Firms esteem supply chain directors since they diminish the
utilize of expansive settled resources such as plants, distribution centers and transportation
vehicles within the supply chain.
3- Increases Cash Stream – Firms esteem supply chain supervisors since they speed up item
streams to clients.

Components of supply chain management

Planning
Planning begins with nailing down the subtle elements of your operation technique. To begin with is
choosing where you will set up shop to create your item – either locally or universally – and whether you
make the whole item yourself or buy a few components somewhere else. There are benefits and
challenges with either so this ought to be done strategically.
Next, choose how you will deliver and store your item. Will you make them in progress and store them to
anticipate arrange? Or will you make them once the client orders? You will moreover have a portion of
the ultimate item made in development and total generation upon arrange or offer arrange customization.
You will be able utilize any combination of these techniques and the strategy for execution estimation is
set up some time recently arranging starts.

Sourcing
The following stage is getting your crude materials and any components you proposed to outsource. This
must happen at the leading conceivable cost, at the correct time, within the right amount. It’s critical that
all providers are altogether confirmed, and all contracts are arranged to urge the most excellent esteem
without relinquishing quality. Conveyance planning is basic, too.
Assessing provider execution may be a persistent prerequisite for ideal supply chain administration, as
well as planning installments and guaranteeing import/export necessities are met.

Location
Location is basic for effective supply chain administration. An appropriate area that is helpful to your
assets and materials is ideal.
For illustration, a carbonated drink company that is set up in an area where water is rare may obstruct the
imperativeness of the trade.

Making
This is where collecting, testing, and pressing exercises happen. This organize too incorporates setting up
rules for execution estimation, how you will store information, your generation offices, and
administrative compliance.

Delivery
Also called coordination’s, this component includes all the steps for handling client orders, disseminating
them, and transporting them. Warehousing and stock, or paying a benefit supplier to oversee both, are
moreover included in this stage.
This is additionally where you figure in trial and guarantee periods and invoicing once the ultimate item is
conveyed.

Returns
You will require a smooth and simple handle for clients to return inadequate items. This will moreover
incorporate how to handle “end of life” items when the time comes for you to cease making, offering, and
supporting certain products.
For inadequate items, this organize incorporates your company’s set up rules for checking execution,
costs, and stock for the returned item. This means:

 Identifying the item condition

 Authorizing returns
 Scheduling substitution item shipments
 Providing discounts

Functions of supply chain management

Adjusting streams
As cash, materials, and data are passed between clients and providers, supply chain administration keeps
them streaming up and down a supply chain.

Joining capacities
Supply chain administration interfaces the exercises of coordination’s, acquiring, and operations to
guarantee that they center on objectives that advantage generally execution.
Planning forms
Supply chain administration increments benefit by adjusting the forms utilized to arrange, source, make,
convey, and (when fundamental) return a company’s items and services

Designing complex frameworks

Recreation instruments can foresee how a supply chain will carry on and appear how little changes can
cause major disturbances within the stream of materials.

Managing assets
Supply chain supervisors are dependable for utilizing individuals, forms, and technology to meet the
wants of customers.

Impacts of climate change upon supply chain management

Supply chain links Typology of climate change impacts/ risks
Manufacturing • damage or complete destruction of assets
• obligations risks
• disturbance of plants and production lines
• control with regard to carbon emissions
• changes in the effectiveness or efficiency of production processes
• increased costs for energy and maintenance activities
• increased cost of upstream operations and product quality
• stimulation of investments in renewable energy and energy efficiency
projects increase in
demand for biofuels and renewable energy sources in the energy sector
• increase in demand for pharmaceuticals’ sector
• stimulation of demand for non-emitting products
• arrangement of lower carbon intensity operating practices by market
leader’s development of diversified products based on lower GHG
emissions
Transportation • increase in buckled rails and rutted roads
• delays leading to paying compensation to operators and causing
problems to customers
• overhead cables brought down because of strong winds
• problems related to coastal defenses
• drainage issues
• landslip resulting from heavy rainfall
• securing stability of structures
Warehousing and  Powerlessness of framework, staff, communications, supply
storage  Conceivable disengagement due to extraordinary climate
occasions
Trading  Reputational risk in downstream segments due to expanded
need foe transparency
 Modern controls with respect to item labeling
 Decrease of request for customer products
Consumption and  Need for improved product design aiming at the elimination of
Customer service packaging material and the enhancement of product durability,
recyclability, and materials efficiency
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