Planning is the most critical fundamental. This involves demand forecasting, supply planning, and inventory optimization. You need to answer: How much do we need? When do we need it? Where should it be stored? A bad plan leads to stockouts (lost revenue) or overstock (dead cash).
is the act of overseeing and optimizing this network. It involves the planning, execution, and control of all activities involved in sourcing, procurement, conversion, and logistics. The Council of Supply Chain Management Professionals (CSCMP) defines SCM as the integration of these processes to create value for the end customer. fundamentals of supply chain management
At its core, supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by a firm or a group of firms to develop and run supply chains in the most effective and efficient ways possible. Planning is the most critical fundamental
To master the fundamentals, you must understand that SCM manages three distinct flows simultaneously: When do we need it
A good returns process is a competitive advantage. A bad returns process destroys margins.
Planning is the strategic portion of SCM. Companies need a strategy for managing all the resources required to meet customer demand for their product or service. A major focus is developing a set of metrics to monitor the supply chain so that it is efficient, costs less, and delivers high quality and value to customers.
To manage a supply chain effectively, organizations must oversee three distinct flows: