Supply Chain Management

Supply chain management is more than reengineering your purchasing practices. It is synchronizing the activities from your vendors all the way to your customers. It is managing and refocusing on your current capabilities of providing goods and services to your customers while being cognizant of utilizing your asset in its optimum manner. In short it is a different way of doing business. The theory is to reduce the cycle time by eliminating unnecessary and redundant activities while implementing the optimum production plan and/or to close the loop between supply and demand. The activities surrounding supply chain management is really to take away the boundaries that exists between the functional departments within the organization. The goal should be to reengineer the processes in a way to make it as seamless as possible. The organization should constantly strive to determine where the competitive advantages are. The key to success will lie in the fact that one must balance the supply chain with the outside customer demand. Marketing decisions have a tremendous effect on the supply chain within an organization. Improving the supply chain to meet the customer demand ultimately will reduce costs and therefore, increases profitability.

Supply chain management solutions are known to have enabled the organizations to determine and eliminate the constraints and to deliver the product to end-users at the right time with the lowest optimum delivered cost. Although, there are times that supply chain management tools will identify the constraints such as throughput, space, resources, and materials that cannot be overcome and alert the organization to seek alternative solutions to tie the path between the suppliers and the customers. In today’s market place there are a variety of Supply/demand chain systems that will allow an organization to further its objectives as well as the objectives of its trading partners by making choices based on the status of the supply chain. “A true supply chain management solution will bring trading partners together in cooperation for common goals of optimization and efficiencies”.