INVENTORY AND SUPPLY CHAIN MANAGEMENT

Inventory and Supply Chain Management

Inventory and Supply Chain Management

Introduction

Firstly, I think we have to understand the concept of SCM if we need to recollect all of the information. Supply Chain Management is the integration of the activities, which associated with the flow and transformation of goods from the raw materials stage to the end-user, as well as the associated information flows, through improves supply chain relationships to achieve a sustainable competitive advantage. Based on extensive research it is estimated that the costs associated with the flow of materials represent a significant proportion of the operating expenses. In some industries these costs approach 75% of the total operating budget. World-wide organizations are spending more than ?400 billion annually on logistics-related services and activities. As a consequence, the introduction of Supply Chain Management should help:

Improve the flow of materials across the supply chain from the perspective of the end-user

Reduce supply chain costs.

This suitable supply chain model that clearly identifies the essential information systems and material flows to satisfy customer requirements. So we can tell from that the customer plays a very important role in the supply chain, it also include upstream and downstream. “The supply chain for a cereal manufacturer relies on an extensive distribution network to ensure that the package cereal reaches the final customer.” That is a simple and good example for us to understand the role of customer in the whole line.

With organization, its suppliers, their suppliers, your customers and their customers all working together to meet the needs of the ultimate end-customer for the mutual benefit of all parties concerned is a very appealing proposition. However, adopting and implementing Supply Chain Management strategies requires a considerable effort and a complete change of mindset. In some cases this shift in the organization's current practices and thinking may well be beyond them. Breaking the paradigm may be well beyond their capabilities, but to succeed in the dynamic business environment they may be forces to re-think their strategies.

From the perspective of a typical organization, each of its supply chains will have both internal and external linkages. Furthermore it is unlikely that all of the organization's supply chain will be part of formal inter-organizational Supply Chain Management initiatives. The focus for the organization is the efforts expended on those supply chains most important for its success. Most important in terms of their supply chains are related processes such as suppliers and customers that offer the greatest potential for achieving a competitive advantage and hold the greatest promise for ongoing success.

Information Systems and Inventory Management over the Supply Chain

At the identical time, we can comprehend in periods of data systems. A 1995 KPMG Peat Marwick study on logistics' administration and expertise shows that the two most significant logistics' matters for enterprises are commanding the charges of logistics-related procedures and anxiety for data expertise assortment, deployment and integration.

For the development of data scheme, there are several new methods arrive out, for example, internet world broad world broad ...