Supply chain process a sequence of activities that start from the extraction of raw materials, to production, to distributors and to the hands of consumers.
FAQs: Business Processes in Supply Chain Management
Supply Chain Management involves coordinating a complex network of activities. While frameworks vary, generally accepted key processes include:
- Plan: Strategies for managing all resources to meet demand.
- Source: Selecting suppliers and managing procurement processes.
- Make: Manufacturing and production scheduling.
- Deliver (Logistics): Managing orders, warehousing, transportation, and distribution.
- Return: Handling returns, defects, and excess products.
- Enable/Management: Cross-functional processes like performance management, data management, and financing across the chain.
Business Process Integration in SCM refers to the coordinated management and seamless linking of processes both *within* an organization (e.g., linking sales forecasting to production planning) and *across* partner organizations in the supply chain (suppliers, manufacturers, distributors, retailers). It involves sharing information, coordinating activities, and often using integrated systems (like ERP or SCM software) to ensure efficient and responsive operations from end to end.
Integration is crucial for competitive SCM because it breaks down silos and allows for:
- Improved Visibility: Real-time tracking of products, orders, and inventory across the chain.
- Increased Efficiency: Eliminating delays and manual handoffs between steps and partners.
- Better Decision Making: Access to integrated data supports more informed strategic and tactical decisions.
- Enhanced Responsiveness: Faster reaction to changes in demand or supply issues.
- Cost Reduction: Optimizing processes, reducing errors, and minimizing excess inventory.
- Stronger Relationships: Collaboration built on integrated processes strengthens partnerships.
Logistics is a fundamental *part* of Supply Chain Management, particularly within the "Deliver" and "Return" key processes. Logistics activities focus on the efficient flow and storage of goods, services, and related information from origin to consumption. This includes transportation management, warehousing, inventory management, material handling, packaging, and order fulfillment. Effective logistics ensures that the products move smoothly and are available at the right time and place within the overall supply chain process.
