Supply Chain Management And The Importance Of Supply Chain Management

Introduction:

Supply chain management (SCM) is a type of management that makes the movement of commodity, which means a raw substantial or a main agricultural product that can be bought and sold, such as copper or coffee. It contains the flow and storage of raw materials, work-in-process inventory, and finished goods from point of the source to point of consuming. Moreover, SCM is a regulatory and strategic coordination of business functions; the layout of these functions within the company through a business within the supply chain in order to improve long-term performance of individual companies and the supply chain. There are many objectives of Supply Chain Management. The first one is to Increase the amount of information. At the same time, reduce the expenses of inventory and running processes. The second objective is to create transparency in information and reduce the obstacles that can exist. The final objection of SCM is to find a comprehensive concept of supply operations, and to improve the continuity of materials, information, and cash flow management.

Supply chain leaders have to invest in improving their team’s abilities to see growing prospects about how procurement can assist the work. Some of the issues facing supply chain leaders include; the need to continue to decrease charges while developing consumer service and assistant the widening in new markets and product lines. Another issues is the need to manage the complexity of selling and customer completion. The goal of this literature review is to show the importance of SCM in business as well as, to discuss some major issues in SCM and comparing with other studies that are related to some issues in SCM and how to face these issues and make a solution. Furthermo...

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... want to be connected to assembly lines and conscious of demand throughout the supply chain. Purchasing and supply management occur at all stages of the supply chain. At each level, logisticians exercise their responsibilities to demand and replace products for their businesses from select suppliers to meet demand. Disorganized supply functions can occur anywhere in the supply chain when there is a fracture in communication. In the article, “Supply Chain Management: More Than Integrated Logistics”. Russell (2007), “the Logistics as a management discipline originated in the military and later branched into the commercial sector as business logistic. Now, the hottest topic in the commercial sector is supply chain management”. In other words, supply chain management has a lot of issues now and these issues make this subject huge and very interesting at the same time.