Supply Chain Management Basics


What is supply chain management?

A supply chain is a network of suppliers, factories, warehouses, distribution centers, and retail businesses, through which materials are acquired, manufactured, and distributed to customers. Supply chain management is a coordinated system of managing this network.

What is integrated supply chain management?

Integrated supply chain management is a centralized system of a business facilitating relationships with its network such as suppliers, factories, warehouses, distribution centers, and retailers. Instead of a company’s multiple departments being involved in many supply chain activities, a team of supply chain professionals does the job.

What are some advantages of integrated supply chain management?

The primary benefits of integrated supply chain are professional expertise and cost efficiency. A team of logistics industry professionals plans, executes, and manages the process. Through integrated supply chain management, a company is able to build strong relationships with vendors as well as bulk-buy, which reduces cost and strengthens the management.

How do you build integrated supply chain strategies?

It is important to have documented strategies for your supply chain management. The process of developing a supply chain strategy includes: developing vision and mission, identifying and prioritizing existing issues, creating objectives, strategies, and tactics, implementing the strategy, and evaluating. A working supply chain strategy should support business goals, maintain a clear focus, be measurable and adjustable, reduce costs, and improve customer satisfaction.

What are different modes of transportation in supply chain management?

There is a diversity of modes in transportation in supply chain management. Different modes include road, rail, pipeline, maritime (oceans, coasts, seas, lakes, rivers and channels), air, intermodal, and telecommunications.

What is involved with routing and scheduling in transportation in supply chain management?

Optimal transportation routing and scheduling is critical in supply chain management. It directly correlates with cost and success. A company in charge of the supply chain management will run an analysis on planning and optimization of routing and scheduling. The analysis covers factors affecting transportation in supply chain management such as customer geography, delivery time and locations, and information on traffic, vehicle, weather, and more.