SUPPLY CHAIN MANAGEMENT (SCM)

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SCM is defined as the integration and management of supply chain organizations and activities through cooperative organizational relationships, effective business processes, and high levels of information sharing to create high-performing value systems that provide member organizations a sustainable competitive advantage. (Handfield & Nichols)

 

 

Six (6) Drivers of Supply Chain Management

1. Cost Pressures (the need to reduce inventory & other wastes).

2. Time Pressures (the need for faster, more customized deliveries)

3. Reliability Pressures (the need to ensure reliability per quality & delivery to customers)

4. Response Pressures (the need to make the status of orders visible, for planning purposes)

5. Transparency Pressures (the need to make the status of orders visible, to support planning)

6. Globalization Pressures (the need to coordinate multiple, complex global supply networks)

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