processing them, working on
them, the entire production process, the out put, the packaging
and even the labelling might constitute a simple supply chain
management case study.
According to the CIO Magazine, Supply chain management (SCM) is
the combination of art and science that goes into improving the
way your company finds the raw components it needs to make a
product or service and deliver it to customers. The following
are five basic components of SCM.
Supply Chain Management has a lot of visible and also
invisible elements to it. The glamorous parts might probably
be the vendor management and the like. It is the invisible
parts of the supply chain that attain the status of primary
labor management, procurement, warehouse
management, Order processing, fulfillment and
The importance of supply chain management has been growing
steadily over the recent years and more so because of the
fact that the companies have been growing larger and larger
Due to this enormous increase in size, the
companies gain more cost efficiency when they
outsource some of the functions that
|they ought to do
themselves to other specialized service companies that
do the needful.
This enables the larger companies
to be more flexible, focus more on their core competencies and
create more value for their customers, while retaining profits
by reducing costs at the same time. The ubiquitous, simple to
use, nature of the Internet has made it possible to automate
some of its supply chain management elements with the help of
robust supply chain management software ( Though it is always
not so easy to do the implementation and execution part ! ).