Fundamentals Of Supply Chain Management

Supply Chain Management (SCM) is the strategic coordination and oversight of all activities involved in moving products from raw materials to the end user

• Inventory Turnover: How many times you sell and replace inventory in a year. (High = efficient; low = obsolete).
• Days of Inventory Outstanding (DIO): How long inventory sits before sale.

1. Supply chain complexity: Global supply chains can be complex and difficult to manage.
2. Risk management: Supply chains are vulnerable to various risks, such as natural disasters, supplier insolvency, and cyber-attacks.
3. Talent and skills shortage: The supply chain industry faces a shortage of skilled professionals.
4. Changing customer expectations: Customer expectations are changing rapidly, and organizations must adapt to meet these changing needs.

1. Collaborate with suppliers and customers: Close collaboration with suppliers and customers can help improve communication, reduce costs, and improve efficiency.
2. Use data analytics: Data analytics can help organizations make informed decisions, identify trends, and optimize supply chain operations.
3. Invest in technology: Technology, such as transportation management systems and warehouse management systems, can help streamline supply chain operations and improve efficiency.
4. Focus on sustainability: Sustainable supply chain practices can help organizations reduce their environmental impact and improve their brand reputation.

The Second Crisis: The Broken Link

Three months later, a truckers’ strike shut down the main highway. No flour could move from the mill to the city. fundamentals of supply chain management

The Fundamentals of Supply Chain Management Supply Chain Management (SCM) is the strategic coordination

1. Sourcing: This involves identifying and selecting suppliers who can provide the necessary raw materials, components, or services to produce a product or deliver a service. Sourcing involves evaluating supplier capabilities, negotiating contracts, and developing relationships with suppliers.
2. Procurement: Procurement involves the actual purchase of goods or services from suppliers. This includes activities such as creating purchase orders, managing inventory, and ensuring compliance with regulations.
3. Production: Production involves the transformation of raw materials into finished goods or services. This can include manufacturing, assembly, testing, and quality control.
4. Logistics: Logistics involves the planning, coordination, and execution of the movement and storage of goods, products, and resources. This includes activities such as transportation, warehousing, and inventory management.
5. Distribution: Distribution involves the delivery of finished goods or services to customers. This can include activities such as order fulfillment, shipping, and customer service.