Friday, 5 April 2013

The management of the supply chain has to do with management

As is evident from the name, the management of the supply chain has to do with management. It is basically a logistics network. The planning and management of activities involved in the different phases, such as contracts, procurement, conversion and logistics management are included.

The activities in supply chain management, supplier relationships and business processes related to control projects are also a part. The main problems are focused on are:

  • Configuration of the distribution network
  • Distribution Strategy
  • Compensation for logistics activities
  • Information
  • Inventory
  • Cash Flow

There is a clear flow and material handling equipment, data, information, and funds through chains of various materials. The system is responsible for the modulation and control of bi-directional flow and seems to work in three levels, namely:

  • Strategic level
  • Tactical level
  • Operational level

The strategic level decision regarding which products to make, where to buy and on the life cycle of products. It is also responsible for managing the life cycle of the product. Made alliances with suppliers, customers and distributors are strategically managed in this section. This is really a long and requires an effort of resources. Chain of information technology operations is also to the strategic level relationships.

The tactical level agreements with resource and procurement contracts and decisions regarding the purchase and other related topics. Decisions on productions such as contracts, schedules and planning are treated at the tactical level. Transportation And Logistics strategies are certainly including frequency, routes, and contracting, and inventory decisions, including decisions about the actions and focus on customer requirements and habits are also part of the negotiations on tactical.

An operational level, most of the operations carried out on a daily basis, such as daily production planning and distribution among all nodes of the network involved in the chain. Each plant has a treatment program. The operational level is responsible for the problems. Planning of materials, operations, input, output operations, to promise not to move the current inventory, manufacturing activities, etc. fall under the operational management statements supply chain.

The effects and the great movements of the judiciary on the evolution of the strategy can be summarized as follows:

  • Creation
  • Integration
  • Globalization
  • Specialization: is outsourced manufacturing and distribution
  • Specialization: The supply chain management as a service
  • Supply Chain Management 2.0

There are a number of processes and functions that are the basis of which:

  • Customer Relationship Management
  • Service Management
  • Demand management style
  • Order fulfillment
  • Production Flow Management
  • Supplier Relationship Management
  • Management of Product Development
  • Returns Management

It is basically the product flow, information flow and the flow of finance and it is essential to keep your business running smoothly.

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