Supply chain management encompasses a number of key activities buy purchasing of goods and services required to make your product make producing your finished product fulfil ensuring your customer receives your product at every stage of the supply chain, goods are made or provided by a. Network models are a useful class of models that can be utilized to aid many types of supply chain decisions. Dont know should be a prompt to investigate and find out the answer. Jul 15, 20 the basic concepts of supply chain management by henry a supply chain provides a company and the activities involved in the business what is needed in designing, making, using, and delivering of services and products. A plethora of supply chain management scm definitions have been developed in recent years. This course provides basic definitions and concepts for planning and controlling the flow of materials into, through, and out of an organization. Both supply chain management and logistics deal with the organization of object flows along the process stages of the supply chain. Essentials of supply chain management wiley online books.
Our basic system consists of two production plants, factory 1 f1 and factory. We recommend the definition of supply chain management developed and used by the global supply chain forum. Basics of supply chain management is suitable to those who work in a supply chain planning environment or require a fuller understanding of management and planning in regard to demand, procurement, supplier and materials requirement. The basic concepts of supply chain management by henry a supply chain provides a company and the activities involved in the business what is needed in designing, making, using, and. Basics of supply chain management nh learning solutions. Basic concepts of supply chain management most basic level means consistently high order fill rates, high ontime delivery rates, and a very low rate of products returned by customers for whatever reason. Shortly after your alarm clock goes off and the coffee maker kicks on, the aroma of your favorite coffee fills the air. It demonstrates that product supply chains as varied as bananas to womens shoes to cement have common supply chain elements.
The basic concepts and principles of healthcare supply chain management. Streamlining supply chain efficiency to maximize profitability this practical guide describes how the supply chain operates and discusses the issues and techniques that are relevant for companies seeking to improve the management of their supply chains. Basic concepts of supply chain management alexander the great based his strategies and campaigns on his armys unique capabilities and these were made possible by effective supply chain management. Each supply chain has its own unique set of market demands and operating challenges and yet the issues remain essentially the same in every case. The concept of supply chain integration sci is based on documented evidence that suggests that much of the waste throughout businesses is a consequence of fragmented supply chain. Through the five online courses and capstone exam you will demonstrate your ability in the equivalent of one semesters worth of coursework at mit.
Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers. The basic concepts in managing the complete flow materials in a supply chain from suppliers to customers are covered. Supply chains encompass the companies and the business activities needed to design, make, deliver, and use a product or service. Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information. The healthcare supply chain involves the flow of many different product types and the participation of several stakeholders. It then focuses on the major issues involved in managing a competitive supply chain including. Supply chain supply chain management is a crossfunctional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal. Plan the initial stage of the supply chain process is the planning stage. Mar 12, 2012 the latest thinking, strategies, developments, and technologies to stay current in supply chain management. Internal efficiency for organizations in a supply chain means that these organizations get an attractive rate of return on. Writing assignment is a tedious task, and the management student has to write assignments many times during their course. Supply chain management focuses on how firms utilise their.
Pdf traceability in agriculture and food supply chain. Basics of supply chain management definitions what is the supply chain. The basic concepts and principles of healthcare supply chain. The supply chain includes manufacturer, suppliers, transporters, warehouses. Internal efficiency for organizations in a supply chain. At the strategic level, company management makes highlevel strategic supply chain decisions that are. According to chopra and meindl 2001, scm engages the management of flows between and among stages in a supply chain. Organized using the features of the essentials series, this easytouse guide contains tips and techniques for maximizing supply chain. Stanford supply chain forum call it distribution or logistics or supply chain management. Chapter 1 supply chain integration aston university. Supply chain integration sci is, to a great extent, concerned with the development of more integrated approaches that hold out the prospect of eliminating many of the inefficiencies directly attributable to supply chain fragmentation. A supply chain is the collection of steps that a company takes to transform raw materials into a final product. The integration of information flow makes the system open, efficient, and able to overcome obstacles. After taking a quick glance at the concept and advantages on supply chain management, let us take a.
The supply chain involves all the parties involved, directly or indirectly, in fulfilling a customer request. The first step in the journey to supply chain management success is to understand its foundation concepts. Supply chain is the network of organizations that are involved, through upstream and downstream linkages, in the different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer from logistics and supply chain management by martin christopher. The integrated supply chain concept is relatively new. The key supply chain processes stated by lambert 2004 are. Essentials of supply chain management, 4th edition wiley. Integrating theory and practices of supply chain management, this book incorporates more than 15 years of supply chain and operations management research and industry consulting experience to both government and industry firms. The micromasters program in supply chain from mitx is an advanced, professional, graduatelevel foundation in supply chain management. Upon completion of this lesson, learners should be able to provide a definition of supply chain, and identify the core components of supply chain. This study focuses on discussing the basic nature and components of supply chain of health care industry with considerable attention on future scopes along with present trends. Supply chain concepts are introduced and basic terminology emphasized, as are relationships. With the term supply chain first being used in the 1980s, before the term supply chain was used, the individual elements of supply chain were treated as. Supply chain management concepts shortly after your alarm clock goes off and the coffee maker kicks on, the aroma of your favorite coffee fills the air.
Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. It is now included in the curriculum of many business schools in the united states and in many selection from basics of supply chain. The difference between logistics and supply chain management. It explains fundamental relationships among the activities that occur in the supply chain.
The supply chain management process is composed of four main parts. While many have recognized the benefits of a process approach to managing the business and the supply chain, most are vague about what. Every business fits into one or more supply chains and has a role to play in each of them. According to chopra and meindl 2001, scm engages the management of flows between and among stages in a supply chain to minimize total cost.
By whatever name it is the sinuous, gritty, and cumbersome process by. It explains fundamental relationships among the activities that occur in the supply chain from suppliers to customers. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes. The coverage focuses on how to build a competitive supply chain using. The basic concepts and principles of healthcare supply. The main purpose of the healthcare supply chain is to deliver products in a. Pdf defining the concept of supply chain management and its. Scm basics scm supply chain resource cooperative scrc. The main purpose of the healthcare supply chain is to deliver products in a timely manner, in order to fulfill the needs of providers. Defining the supply chain key terminology and concepts. The chapter explore the concept of supply chain management in the public.
This definition certainly gives the supply chain management concept a ubiquitous and pervasive nature. The supply chain is responsible for getting those coffee beans across the world and to your kitchen. The initial stage of the supply chain process is the planning stage. The bestselling guide to the field, updated with the latest innovations essentials of supply chain management is the definitive guide to the field, providing both broad coverage and necessary detail from a practical, realworld perspective. Supply chain management scm is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. Supply chain management concepts what is supply chain. Sep 02, 2014 supply chain supply chain management is a crossfunctional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. Learn supply chain principles from georgia institute of technology. This course will provide a solid understanding of what a supply chain is all about. Before an organization tries to focus on supply chain management, its leaders must determine what the supply chain encompasses. Supply chain concepts supply chain concepts coursera. In the spirit of the saying, amateurs talk strategy and professionals talk logistics, lets look at the campaigns of alexander the great.
The coverage focuses on how to build a competitive supply chain. This course covers manufacturing, distribution, service and retail industries. Previously used as a synonym, supply chain management, in contrast to logistics, goes beyond the confines of a company. Subsequently, typical decisions in the scope of supply chain and operations management are systematically rolled out. Basics of supply chain management is suitable to those who work in a supply chain. Supply chain and logistics terms and glossary updated february, 2010 please note. Supply chain and logistics terms and glossary updated. The supply chain not only includes the service providers, manufacturers,executers. The latest thinking, strategies, developments, and technologies to stay current in supply chain management. The international warehouse logistics association iwla does not take responsibilityfor the content of these definitions and doesnot endorse theseas official. Supply chain concepts before an organization tries to focus on supply chain management, its leaders must determine what the supply chain encompasses.
Feb 25, 2003 streamlining supply chain efficiency to maximize profitability this practical guide describes how the supply chain operates and discusses the issues and techniques that are relevant for companies seeking to improve the management of their supply chains. Supply chain strategy yes no dont know 1 does your company have a documented supply chain. Logistics management is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customers requirements. Presenting the core concepts and techniques of supply chain management in a clear, concise and easily readable style, the third edition of essentials of supply chain management outlines the most crucial tenets and concepts of supply chain management. Supply chain concepts defining the supply chain informit.
Companies in any supply chain must make decisions individually and collectively regarding their actions in five areas. Just as you cant manage what you dont measure, you cant plan and execute what you havent clearly defined. There is a basic pattern to the practice of supply chain management. Also referred to as the logistics network suppliers, manufacturers, warehouses, distribution.
An overview of supply chain concepts and examples from the. Yes means your company is meeting basic supply chain requirements. Pdf basics of supply chain and operations management. This course provides basic definitions and concepts. Ae defining the concept of supply chain management and its relevance to romanian academics and practitioners 76 amfiteatru economic business market on the circuit cocacola wholesaler retailer final consumer caescu and dumitru, 2011. These assignment topics are chosen by students themselves, but most of the time students receives the topic from their teachers. Glasersegura, phd slides from introduction to supply chain management, by david simchilevi, philip kaminsky, and edith simchilevi slides from basics of supply chain management, stevens institute of technology.
Presenting the core concepts and techniques of supply chain management in a clear, concise and easily readable style, the third edition of essentials of supply chain management outlines the most crucial tenets and concepts of supply chain. James malakoff, special assistant to the president, global operations, estee lauder companies excellent explanation of the supply chain. Sound welcome to our lecture on supply chain concepts where we will introduce the various elements of supply chain, and how they work together to create the integrated supply chain model. Those companies that learn how to build and participate in strong supply chains will have a substantial competitive advantage in their markets. Key concepts of supply chain management alexander the great based his strategies and campaigns on his armys unique capabilities and these were made possible by effective supply chain management. In the current competitive scenario supply chain management assumes a significant importance and calls for serious research. A recognised subject within its own right, this course is also one of the core modules in the apics cpim. Pdf this chapter introduces global supply chain and operations management. The concept of supply chain is well established in the literature and is generally referred to as the alignment of firms that bring products or services to market lambert, stock and ellram, 1998. The practice of supply chain management has become widespread in most industries. Provides an introduction to supply chain leverages graphics to promote the. Chapter 1 key concepts of supply chain management after reading this chapter you will be able to appreciate what a supply chain is and what it does understand where your selection from essentials of supply chain.
Schott, drph jiannping hsu college of public health georgia southern university health care supply chain. From clear explanation of fundamental concepts to insightful discussion of supply chain innovation, this book offers students and professionals a. This is an introductory course for production and inventory management personnel and cpim candidates. Logistics typically refers to activities that occur within the boundaries of a single organization and supply chain. Businesses depend on their supply chains to provide them with what they need to survive and thrive.
Concepts and history of supply chain management practices 2. Supply chain in this industry being a significant driver of cost is therefore grabbing all the attention from industry stakeholders. A supply chain is a network between a company and its suppliers to produce and distribute a specific product, and the supply chain represents the steps it takes to get the. Licensed under creative commons attributionshare alike 2. Ae defining the concept of supply chain management and its. Supply chain intro summary supply chain basics is an overview of the concepts of supply chain management and logistics.
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