The Pros And Cons Of Supply Chain

703 Words3 Pages
WHAT IS SUUPLY CHAIN Supply chain management (SCM) is the administer of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer. Supply chain management involves coordinating and integrating these flows both within and among companies. The concept of Supply Chain Management is based on two core ideas. 1) Practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. 2) Supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “four walls.” Few businesses understood, much less managed,…show more content…
It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. The organizations that make up the supply chain are “linked” together through physical flows and information flows. Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. But just as important are information flows. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up and down the supply…show more content…
For “world class” performance, both the network and the individual components must be designed appropriately, and the allocation of resources over the resulting infrastructure must be performed effectively. The process industries have been hampered in this quest by both intrinsic factors (e.g. the need to influence processes at the molecular level, and wide distributions of asset ages) and technological factors (e.g. availability of tools for supply chain
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