Supply chain management includes the
purchasing, operations, distribution and integration processes that
ensure the efficient production and delivery of goods and services
to end-customers.
These are the following element of
supply chain management-
- Purchasing- The purchasing
function, which typically only sources and buys the materials
required for the production or manufacturing of products, manages
the activities and operations related to the supply of inputs
(goods, materials and services) under SCM. Recent trends in
purchasing like online purchasing or Ecommerce facilities growing
day by day. Operational responsibilities are increasing because of
huge competition and purchasing is become fast and advanced.
- Operation - The operations function
in a supply chain includes demand planning, forecasting,
production, and in some types of businesses, inventory
management.
- Distribution- This portion of SCM
involves the planning, logistics and delivery of products from a
warehouse or production facility to wholesalers, retailers or
end-customers directly. Ecommerce is increasing day by day and
distribution become most crucial and important for every
organization.
- Integration- Supply Chain
Integration (SCI) is the application of technology to facilitate
the close coordination of the SCM functions, which allows all
parties in the supply chain to see the details of their actions and
interactions. SCI also provides for the analysis historical
transactions as a part of demand, inventory and logistics
planning.