Supply chain management

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In commerce, supply chain management (SCM ), the management of the flow of goods and services, involves the movement and storage of raw materials, inventory in work processes, and finished goods from the point of origin to the point consumption. Connected, interconnected networks, channels and business nodes join in the provision of products and services needed by end customers in the supply chain. Supply chain management has been defined as "design, planning, implementing, controlling, and monitoring supply chain activities with the goal of creating clean value, building competitive infrastructure, utilizing logistics worldwide, synchronizing supply with demand and measuring performance globally." SCM Practice very interesting from the fields of industrial engineering, systems engineering, operations management, logistics, procurement, information technology, and marketing and strive for an integrated approach. Marketing channels play an important role in supply chain management. Current research in supply chain management is concerned with topics related to sustainability and risk management, among others. Some suggest that the "human dimension" of SCM, ethical issues, internal integration, transparency/visibility, and human resource management/talent are topics so far underrepresented on the research agenda.

Video Supply chain management

Asal istilah dan definisi

In 1982, Keith Oliver, a consultant at Booz Allen Hamilton (now Strategy), introduced the term "supply chain management" into the public domain in an interview for the Financial Times.

In the mid-1990s, more than a decade later, the term "supply chain management" earned currency when many articles and books came out on the subject. The supply chain was originally defined as covering all activities related to the flow and transformation of goods from raw materials to end users, as well as related information flows. Supply chain management is then further defined as the integration of supply chain activities through better supply chain relationships to achieve competitive advantage.

In the late 1990s, "supply chain management" (SCM) rose to prominence, and operations managers began using it in their titles with increasing regularity.

Other common supply chain management definitions include:

• Management of upstream and downstream value flows from materials, finished goods, and related information among suppliers, companies, retailers and end consumers.

• Strategic, strategic coordination of traditional business functions and tactics across business functions within a particular company and across the business in the supply chain, for the purpose of improving the long-term performance of the individual enterprise and the overall supply chain
• The customer-focused definition is given by Hines (2004: p76): "Supply chain strategy requires a total system view of links in chains that work together efficiently to create customer satisfaction at the customer's endpoint of delivery. downgraded throughout the chain by unnecessary costs, movements and handling, key focuses are efficiency and value added, or end-user perceptions of value.Efficiency must be improved, and congestion removed.The performance measurement focuses on the total efficiency of the system and the distribution of prize money which is fair to them in the supply chain.The supply chain system should be responsive to customer needs. "
• Integration of key business processes across the supply chain for the purpose of creating value for customers and stakeholders (Lambert, 2008)
• According to the Professional Supply Chain Management Board (CSCMP), supply chain management includes planning and managing all activities involved in sourcing, procurement, conversion, and logistics management. It also includes coordination and collaboration with channel partners, who may be the suppliers, intermediaries, third-party service providers, or customers. Supply chain management integrates supply and demand management within and across the enterprise. Recently, loosely and interlocking business networks that work together to provide product and service offerings are called Extended Enterprise .

The supply chain, as opposed to supply chain management, is a set of organizations that are directly linked by one or more upstream and downstream stream of product, service, finance, or information from source to customer. Supply chain management is the management of such chains.

Supply chain management software includes tools or modules used to execute supply chain transactions, manage supplier relationships, and control related business processes.

Supply chain event management (SCEM) considers all possible events and factors that could disrupt the supply chain. With SCEM, possible scenarios can be created and solutions designed.

In many cases, the supply chain includes collection of goods after use by consumers for recycling. Including third party logistics or other collection agencies as part of the RM re-patriation process is a way to describe a new endgame strategy.

Maps Supply chain management

Function

Supply chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of internal material processing into finished goods, and the movement of finished goods from the organization and toward the final consumer. As organizations strive to focus on core competencies and become more flexible, they reduce their ownership of raw material sources and distribution channels. These functions are increasingly outsourced to other companies that can perform better or more cost-effective activities. The effect is increasing the number of organizations involved in meeting customer demand, while reducing managerial control over daily logistics operations. Less control and more supply chain partners lead to the creation of supply chain management concepts. The goal of supply chain management is to increase trust and collaboration among supply chain partners thereby increasing visibility of inventory and inventory movement movement.

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Importance

Organizations are increasingly finding that they have to rely on effective supply chains, or networks, to compete in global markets and network economies. In the new management paradigm of Peter Drucker (1998), this business relationship concept transcends the boundaries of traditional firms and seeks to govern the entire business process across the value chain of some companies.

In recent decades, globalization, outsourcing, and information technology have enabled many organizations, such as Dell and Hewlett Packard, to successfully operate a collaborative supply network where each business partner focuses specifically on a few key strategic activities (Scott 1993). This inter-organizational supply network can be recognized as a new form of organization. However, with the intricate interactions among players, the network structure does not fit into the "market" or "hierarchy" category (Powell, 1990). It is not clear what kind of performance impacts different supply chain structures on the company, and little is known about the coordination and trade-off conditions that may exist among players. From a systems perspective, complex network structures can be decomposed into individual component companies (Zhang and Dilts, 2004). Traditionally, companies in supply networks concentrate on the input and output of the process, with little concern for internal management working from other individual players. Therefore, the choice of internal management control structure is known to have an impact on the performance of local companies (Mintzberg, 1979).

In the 21st century, changes in the business environment have contributed to the development of supply chain networks. First, as a result of globalization and the proliferation of multinational corporations, joint ventures, strategic alliances, and business partnerships, significant success factors are identified, complementing previously "just-in-time", lean manufacturing, and agile manufacturing practices. Secondly, technological change, especially the dramatic decrease in communication costs (a significant transaction cost component), has led to a change in coordination among members of supply chain networks (Coase, 1998).

Many researchers have recognized the structure of the supply network as a new form of organization, using terms such as "Keiretsu", "Expand Company", "Virtual Enterprise", "Global Production Network", and "Next Generation Manufacturing System". In general, such structures can be defined as "a group of semi-independent organizations, each with their abilities, collaborating in an ever-changing constellation to serve one or more markets to achieve some specific business objectives for the collaboration" (Akkermans, 2001 ).

Supply chain management is also important for organizational learning. Companies with wider geographic supply chains connecting different trade groups tend to be more innovative and productive.

The security management system for the supply chain is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by ISO and IEC. Supply Chain Management takes a lot from the field of operations management, logistics, procurement, and information technology, and strives for an integrated approach.

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Historical development

Six major movements can be observed in the evolution of supply chain management studies: creation, integration, and globalization (Movahedi et al., 2009), one and two specialization phases, and SCM 2.0.

Creation era

The term "supply chain management" was first coined by Keith Oliver in 1982. However, the concept of supply chain in management was very important long before, at the beginning of the 20th century, especially with the creation of assembly lines. Characteristics of the supply chain management era include the need for large-scale change, reengineering, downsizing driven by cost reduction programs, and widespread attention to Japanese management practices. However, the term became widely adopted after the publication of the introduction of Supply Chain Management in 1999 by Robert B. Handfield and Ernest L. Nichols, Jr., which published more than 25,000 copies and translated into Japanese, Korean, Chinese, and Russian.

The integration era

This era of supply chain management was highlighted by the development of an electronic data exchange system (EDI) in the 1960s, and developed during the 1990s through the introduction of enterprise resource planning (ERP) systems. This era continues to evolve into the 21st century with the expansion of an Internet-based collaborative system. The era of supply chain evolution is characterized by increased value-added and cost reduction through integration.

Supply chains can be classified as phase 1, 2 or 3 networks. At the supply chain stage type 1, systems such as production, storage, distribution, and material control are unrelated and independent of each other. In the supply chain stage 2, this is integrated under one plan and enterprise resource planning (ERP) enabled. The phase 3 supply chain is one that achieves vertical integration with upstream suppliers and downstream customers. An example of this supply chain is Tesco.

Globalization era

The third movement of supply chain management development, the era of globalization, can be characterized by the attention given to the global system of supplier relations and supply chain expansion beyond the national borders and to other continents. Although the use of global sources in the supply chain of the organization can be traced back several decades (for example, in the oil industry), it was not until the late 1980s that a large number of organizations began to integrate global resources into their core business. This era is characterized by the globalization of supply chain management in organizations with the aim of enhancing their competitive advantage, adding value, and reducing costs through global sources.

Specialization Era (phase I): outsourced manufacturing and distribution

In the 1990s, companies began to focus on "core competency" and specialization. They abandoned vertical integration, sold non-core operations, and shifted those functions to other companies. This alters the management requirements, by extending the supply chain beyond the corporate wall and distributing management across specialized supply chain partnerships.

This transition also refocused the fundamental perspectives of each organization. Original equipment manufacturers (OEMs) are the owners of brands that require remote visibility into their supply base. They must control the entire supply chain from the top, not from within. Contract manufacturers must manage material bills with different part numbering schemes from multiple OEMs and support customer demand for visibility in vendor-managed work processes and inventory (VMI).

The specialization model creates a manufacturing and distribution network consisting of several individual supply chains specifically for manufacturers, suppliers, and customers working together to design, manufacture, distribute, market, sell, and serve a product. This set of partners may change according to specific markets, territories or channels, resulting in the proliferation of trading partner environments, each with its unique characteristics and demands.

Specialization era (phase II): Supply chain management as a service

Specialization in the supply chain began in the 1980s with the start of transport brokers, warehouse management (storage and inventory), and non-asset based operators, and has matured beyond transport and logistics into aspects of supply planning, collaboration, execution and performance management.

Market forces sometimes demand rapid change from suppliers, logistics providers, locations, or customers in their role as a supply chain component. This variability has a significant effect on supply chain infrastructure, from the foundation layers in building and managing electronic communications between trading partners, to more complex requirements such as process configuration and workflows that are important for the management of the network itself.

Supply chain specialization enables companies to improve their overall competencies in the same way that manufacturing and distribution made by outsiders; this allows them to focus on their core competencies and assemble a specific, best-in-class partner network to contribute to the overall value chain itself, thereby improving overall performance and efficiency. The ability to acquire and use the specialized supply chain expertise of this domain quickly without developing and maintaining a completely unique and complex competency at home is the main reason why supply chain specialization is becoming more popular.

Hosting technology resources for supply chain solutions made its debut in the late 1990s and have been rooted primarily in the category of transport and collaboration. This has evolved from an application service provider (ASP) model from about 1998 to 2003, to an on-demand model from around 2003 to 2006, to a software model as a service (SaaS) that is currently the focus of the day.

Supply Chain Management 2.0 (SCM 2.0)

Building on globalization and specialization, the term "SCM 2.0" has been created to describe both changes in the supply chain itself as well as the evolution of processes, methods, and tools to manage them in this new "era". The growing popularity of collaborative platforms is highlighted by the emergence of the TradeCard supply chain collaboration platform, which connects many buyers and suppliers with financial institutions, enabling them to transact automated supply chain finance.

Web 2.0 is a trend in the use of the World Wide Web that is meant to enhance creativity, information sharing, and collaboration among users. In essence, the common attribute of Web 2.0 is to help navigate the vast information available on the Web to find what is being purchased. This is the idea of ​​a usable path. SCM 2.0 replicates this idea in supply chain operations. This is the path to SCM results, a combination of processes, methodologies, tools, and delivery options to guide companies to their results quickly because of the complexity and speed of the supply chain is increasing because of global competition; rapid price fluctuations; change oil prices; short product life cycle; expanded specialization; near-, far-, and off-shoring; and talent scarcity.

SCM 2.0 utilizes solutions designed to rapidly deliver results with agility to manage future changes rapidly for continued sustainability, value, and success. It is delivered through a network of competencies that comprise the best supply chain expertise to understand which elements, both operational and organization, deliver results, and through a deep understanding of how to manage these elements to achieve the desired outcomes. These solutions are delivered in a variety of options, such as no touch through outsourcing business processes, middle touch through managed services and software as a service (SaaS), or a high touch in traditional software deployment models.

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Business process integration

Successful SCM requires change from managing individual functions to integrating activities into key supply chain processes. In the scenario example, the purchasing department placed the order as its requirement became known. The marketing department, responding to customer requests, communicates with several distributors and resellers for trying to determine how to meet this demand. Information shared between supply chain partners can only be fully utilized through process integration.

The integration of supply chain business processes involves collaborative work between buyers and suppliers, joint product development, common systems, and information sharing. According to Lambert and Cooper (2000), operating an integrated supply chain requires a continuous flow of information. However, in many companies, management has concluded that optimizing product flows can not be solved without applying a process approach. The main supply chain process proposed by Lambert (2004) is:

• Customer relationship management
• Customer service management
• Request management style
• Order fulfillment
• Manufacturing flow management
• Supplier relationship management
• Product development and commercialization
• Restore management

Much has been written about demand management. The best companies in its class have the same characteristics, which include the following:

• Internal and external collaboration
• Initiatives to reduce waiting time
• Tighter feedback from customers and market demand
• Customer-level forecasting

One can suggest other important business supply processes that incorporate the processes stated by Lambert, such as:

Customer service management process

Customer relationship management concerns the relationship between the organization and its customers. Customer service is the source of customer information. It also provides customers with real-time information about scheduling and product availability through an interface with the company's production and distribution operations. Successful organizations use the following steps to build customer relationships:

• define mutually satisfying goals for organizations and customers
• build and maintain customer relationships
• induce positive feelings within organizations and customers

Procurement Process

Strategic plans are developed with suppliers to support the manufacturing flow management process and new product development. In companies that operate globally, resources can be managed globally. The desired result is a relationship in which both parties benefit and reduce the time required for product design and development. The purchase function can also develop rapid communication systems, such as electronic data interchange (EDI) and Internet connections, to deliver possible requirements faster. Activities related to obtaining products and materials from external suppliers involve resource planning, supply provision, negotiation, order placement, incoming transportation, storage, handling and quality assurance, many of which include the responsibility to coordinate with suppliers in terms of scheduling, continuity supply (inventory), hedging, and research into new sources or programs. Procurement has recently been recognized as a core source of value, driven by an increasing tendency to outsource products and services, and changes in the global ecosystem that require stronger relationships between buyers and sellers.

Product development and commercialization

Here, customers and suppliers must be integrated into the product development process to reduce time to market. When the product life cycle is shortened, the appropriate product must be developed and successfully launched with a shorter time schedule to keep the company competitive. According to Lambert and Cooper (2000), product development managers and commercialization processes must:

1. coordinate with customer relationship management to identify customer needs that are articulated;
2. selecting materials and suppliers in connection with procurement; and
3. develop production technologies in the manufacturing flow to produce and integrate into the best supply chain flow for specific product and market combinations.

Supplier integration into new product development processes proved to have a major impact on product target cost, quality, delivery, and market share. Utilizing suppliers as a source of innovation requires an extensive process that is characterized by the development of technology sharing, but also involves the management of intellectual property issues.

Manufacturing flow management process

The manufacturing process generates and supplies the product to a distribution channel based on previous estimates. The manufacturing process must be flexible to respond to market changes and must accommodate bulk customization. Orders are processes that operate on a just-in-time (JIT) basis in the minimum lot size. Changes in the manufacturing flow process lead to shorter cycle times, which means a responsive increase and efficiency in meeting customer demand. This process manages activities related to planning, scheduling, and supporting manufacturing operations, such as in-process storage, handling, transportation, and component time phases, inventory at manufacturing sites, and maximum flexibility in coordination of geographic assemblies and end of physical distribution operations delays.

Physical distribution

This concerns the movement of the finished product or service to the customer. In the physical distribution, the customer is the ultimate goal of the marketing channel, and the availability of the product or service is an essential part of the marketing efforts of each participant's channel. It is also through the process of physical distribution that the time and space of customer service becomes an integral part of marketing. This link connects the marketing channel with its customers (i.e., connecting producers, wholesalers, and resellers).

Outsourcing/partnership

This includes not only outsourcing the procurement of materials and components, but also outsourcing services that have traditionally been provided at home. The logic of this trend is that companies will increasingly focus on activities in the value chain where it has different advantages and transfers others. This movement is particularly evident in the field of logistics, where the provision of transport, storage, and inventory control is increasingly subcontracted to specialists or logistics partners. Also, managing and controlling these partner and supplier networks requires a mix of central and local engagement: strategic decisions are taken centrally, while supplier performance monitoring and control and daily relationships with logistics partners are best managed locally./dd>

Performance measurement

Experts find a strong relationship of supplier bow and the largest customer integration to market share and profitability. Taking advantage of suppliers' capabilities and emphasizing long-term supply chain perspectives in customer relations can both be correlated with firm performance. Since logistics competence becomes an important factor in creating and maintaining a competitive advantage, measuring logistics performance is becoming increasingly important, as the difference between profitable and unprofitable operations becomes narrower. IN. Kearney Consultants (1985) notes that companies involved in comprehensive performance measurement are aware of overall productivity improvements. According to experts, internal measures are generally collected and analyzed by the company, including cost, customer service, productivity, asset measurement, and quality. External performance is measured by measuring customer perceptions and benchmarking "best practices".

Management warehousing

To reduce company costs and expenses, warehouse management is concerned with storage, reducing labor costs, sending authorities with on-time delivery, loading & amp; loading and unloading facilities with the right area, inventory management system etc.

Workflow management

Integrating suppliers and customers closely into the workflow (or business process) and thereby achieving an efficient and effective supply chain is a key goal of workflow management.

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Theory

There is a gap in the literature on current supply chain management studies (2015): there is no theoretical support to explain the existence or boundaries of supply chain management. Some authors, such as Halldorsson et al. (2003), Ketchen and Hult (2006), and Lavassani et al. (2009), has tried to provide a theoretical foundation for various fields related to the supply chain using organizational theories, which may include the following:

• Resource-based view (RBV)
• Transaction cost analysis (TCA)
• Knowledge-based view (KBV)
• Strategic choice theory (SCT)
• Agency theory (AT)
• Channel coordination
• Institutional Theory (InT)
• System theory (ST)
• Network perspectives (NP)
• Materials logistics management (MLM)
• Just-in-time (JIT)
• Material requirements planning (MRP)
• The constraint theory (TOC)
• Total quality management (TQM)
• Agile creation
• Time-based competition (TB)
• Quick response creation (QRM)
• Customer relationship management (CRM)
• Supply chain management (RCM)
• Dynamic Ability Theory
• Dynamic Management Theory
• Available for appointments (ATP)
• Supply Chain RoadmapÃ,®

However, the unit of analysis of most of these theories is not the supply chain but other systems, such as corporate relations or buyer-suppliers. Among the few exceptions are the relational views, which outline the theory for considering spouses and corporate networks as the main unit of analysis to explain the performance of superior individual firms (Dyer and Singh, 1998).

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Supply chain

In supply chain management studies, the concept of centroid has become an important economic consideration. Centroid is a location that has a high proportion of the country's population and a high proportion of its manufacturing, generally within 500 mi (805 km). In the US, two major supply chain centers have been established, one near Dayton, Ohio, and the second near Riverside, California.

The mass center near Dayton is very important because it is closest to the US and Canadian population centers. Dayton is 500 miles from 60% of the population and US production capacity, and 60% of Canada's population. This region includes exchanges between I-70 and I-75, one of the busiest in the country, with 154,000 passing vehicles per day, 30-35% of which are freight trucks. In addition, the I-75 corridor is home to the busiest north-south rail route east of the Mississippi River.

Efficient tax-efficient supply chain management is a business model that considers the tax effects in the design and implementation of supply chain management. As a consequence of globalization, cross-national businesses pay different tax rates in different countries. Due to these differences, they can legally optimize their supply chains and increase profits based on tax efficiency.

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Sustainability and social responsibility in the supply chain

Supply chain sustainability is a business issue that affects the supply chain of an organization or logistics network, and is often quantified by comparison with SECH ratings, which use a triple bottom line that combines economic, social, and environmental aspects. SECH ratings are defined as social, ethical, cultural, and health footprints. Consumers are becoming more aware of the environmental impacts of their purchases and SECH ratings of companies and, together with non-governmental organizations (NGOs), set the agenda for transition to organic food, anti-sweat labor code, and locally produced goods that support businesses independent and small. Since the supply chain can cover more than 75% of the company's carbon footprint, many organizations are exploring ways to reduce this and thus improve their SECH ratings.

For example, in July 2009, Wal-Mart announced its intention to create a global sustainability index that would assess products according to the environmental and social impacts of their production and distribution. The index is intended to create environmental accountability in the Wal-Mart supply chain and to provide motivation and infrastructure for other retail companies to do the same.

It has been reported that companies are increasingly considering environmental performance when choosing suppliers. A 2011 survey by the Carbon Trust found that 50% of multinationals expect to choose their suppliers based on future carbon performance and 29% of suppliers can lose their place in the 'green supply chain' if they do not have sufficient performance records on carbon.

The Dodd-Frank Wall Street Reform and the US Consumer Protection Act, signed into law by President Obama in July 2010, contain supply chain sustainability in the form of Conflict Minerals law. This law requires companies under the SEC to conduct third party audits of their supply chains to determine whether tin, tantalum, tungsten, or gold (collectively referred to as mined or soured mineral resources conflict) from the Democratic Republic of Congo, and make reports (available to the general public and SEC) detailing the due diligence efforts and audit results. Supplier chains and vendors for these reporting companies are expected to provide appropriate supporting information.

Incidents such as the Collapse of the Savar Building 2013 with more than 1100 victims have led to widespread discussion about corporate social responsibility throughout the global supply chain. Wieland and Handfield (2013) suggest that companies need to audit products and suppliers and that supplier audits need to go beyond direct contact with first-tier suppliers. They also show that visibility needs to be improved if supply can not be controlled directly and that smart and electronic technology plays a key role to increase visibility. Finally, they highlight that collaboration with local partners, across industries and with universities is critical to successfully managing social responsibility in the supply chain.

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Circular supply chain management

Circular Supply Chain Management (CSCM) is "the configuration and coordination of organizational functions of marketing, sales, R & D, production, logistics, IT, finance, and customer service within and across business units and organizations to close, slow down, intensify , narrow, and dematerialize materials and energy loops to minimize inputs of inward and waste resources and leakage emissions from the system, improve operative effectiveness and efficiency and generate competitive advantage ". By reducing resource input and waste leakage along the supply chain and configuring it to enable the recirculation of resources at different stages of the product or service life cycle, potential economic and environmental benefits can be achieved. This consists of, for example, material cost reduction and waste management as well as emission reduction and resource consumption.

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Components

Management components

The SCM component is the third element of the four-square circulation framework. The level of integration and management of business process links is a function of the number and level of components added to links (Ellram and Cooper, 1990; Houlihan, 1985). As a result, adding more management components or increasing the level of each component can increase the integration level of the business process link.

Literature on business processes re-engineering buyer-supplier relationships, and SCM demonstrates the range of possible components that should receive managerial attention when managing supply relationships. Lambert and Cooper (2000) identify the following components:

• Plan and control
• Work structure
• Organizational structure
• Structure of product flow facility
• The structure of the information flow facility
• Management methods
• Strength and leadership structure
• Risk and reward structure
• Culture and attitude

However, a more careful examination of the existing literature leads to a more comprehensive understanding of what should be an important supply chain component, or "branch" of previously identified supply chain business processes - that is, what component relationships may be related to suppliers and customers. Bowersox and Closs (1996) suggest that the emphasis on cooperation represents the synergism that leads to the highest attainment together. Mainline level participants are businesses willing to participate in responsibility for ownership of inventory or other financial risks, including primary-level components (Bowersox and Closs, 1996). Medium-level (special) participants are businesses that participate in channel relationships by performing essential services for key participants, including intermediate components, that support key participants. Third party channel participants and components supporting the main level channel participants and a fundamental branch of the intermediate component can also be included.

Consequently, the Lambert and Cooper framework of the supply chain component does not lead to any conclusions that are primary or secondary supply chain components (see Bowersox and Closs 1996, p. 93) - that is, which supply chain components should seen as primary or secondary, how these components should be structured to achieve a more comprehensive supply chain structure, and how to check the supply chain as an integrative entity (see above sections 2.1 and 3.1).

Inverted supply chain

Reverse logistics is the process of managing the return of goods. This is also referred to as "aftermarket customer service". Whenever money is taken from a warranty reserve or corporate service logistics budget, one can talk about reverse logistics operations. Reverse logistics is also the process of returning goods management from the store, where the returned items are sent back to the warehouse and afterwards either the warehouse scrap the goods or send them back to the supplier for reimbursement depends on the merchandise warranty. 3

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System and value

The supply chain system configures the value for those who manage the network. Value is additional revenue beyond the cost of building a network. Creating value and sharing the benefits appropriately to encourage effective participation is a key challenge for any supply system. Tony Hines defines the value as follows: "In the end is the customer who pays the price for the delivered service that confirms the value and not the producer who only adds costs up to that point".

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Global app

The global supply chain poses challenges related to quantity and value. Supply and value chain trends include:

• Globalization
• Increase cross-border resources
• Collaboration for the value chain section with a low cost provider
• Shared service center for logistics and administration functions
• More global operations, which require enhanced coordination and global planning to achieve optimal global
• Complex issues also involve medium to higher levels

This trend has many benefits for manufacturers because they allow larger lot sizes, lower taxes, and better environments (eg, Culture, infrastructure, custom tax zones, or advanced OEMs) for their products. There are many additional challenges when the scope of the supply chain is global. This is because with a larger supply chain of scope, waiting times are longer, and because there are more problems involved, such as various currencies, policies, and laws. The problem includes various currencies and assessments in different countries, different tax laws, different trade protocols, vulnerability to natural disasters and cyber threats, and a lack of transparency in costs and profits.

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Supply chain consultancy

Supply chain consultancy is the provision of expert knowledge to assess supply chain productivity and, ideally, to increase productivity.

Supply chain consulting is a service involved in the transfer of knowledge about how to leverage existing assets through better coordination and can therefore be a source of competitive advantage; With this the role of consultants is to assist management by adding value to the whole process through various sectors ranging from ordering raw materials to final products.

In this case, the company builds an internal consulting team to address problems or external uses, (the company chooses between these two approaches by taking into account various factors).

The use of external consultants is a common practice among companies. The entire consultation process generally involves the analysis of the entire supply chain process, including the mitigation or corrective actions taken to achieve better overall performance.

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Certification

Skills and competencies

Supply chain professionals need to have knowledge of managing supply chain functions such as transportation, warehousing, inventory management, and production planning. In the past, supply chain professionals emphasized logistical skills, such as knowledge of shipping routes, familiarity with warehousing equipment and distribution center locations and footprints, and a strong understanding of transport fares and fuel costs. Recently, supply chain management extends to enterprise-wide logistics support and global supply chain management. Supply chain professionals need to have an understanding of the basics and strategies of business sustainability.

Roles and responsibilities

Supply chain professionals play a major role in supply chain design and management. In the design of the supply chain, they help determine whether a product or service is provided by the company itself (insourcing) or by other companies elsewhere (outsourcing). In supply chain management, supply chain professionals coordinate production among many providers, ensuring that the production and transportation of goods occur with minimal quality control or inventory problems. One of the goals of a well designed and maintained supply chain for a product is to successfully build a product at minimal cost. Such supply chains can be regarded as a competitive advantage for the company.

Beyond the design and maintenance of the supply chain itself, supply chain professionals participate in aspects of supply chain-related business, such as sales forecasts, quality management, strategy development, customer service, and system analysis. Production of goods can evolve over time, so that the existing supply chain design becomes obsolete. Supply chain professionals need to be aware of changes in production and business climate that affect the supply chain and create an alternative supply chain as needed. Individuals working in supply chain management can earn professional certification by passing exams developed by third-party certification organizations. The purpose of certification is to ensure a certain level of expertise in the field.

Education

The knowledge required to pass the certification exam can be obtained from several sources. Some knowledge may be derived from lecture programs, but mostly derived from a mix of learning experiences at work, attending industry events, learning best practices with their peers, and reading books and articles in the field. The certification organization may provide certification workshops tailored to their exams. There are also free web sites that provide a large number of educational articles, as well as internationally-recognized blogs that provide a good source of news and updates.

Ratings

The University of North America follows a high ranking in their master's education at the rank of SCM World University 100, published in 2017 and which is based on the opinions of supply chain managers: Michigan State University, Penn State University, University of Tennessee, Massachusetts Institute of Technology, State University Arizona, the University of Texas at Austin and the University of Western Michigan. In the same rank, the following highly ranked European universities: Cranfield School of Management, Vlerick Business School, INSEAD, Cambridge University, Eindhoven University of Technology, London Business School and the Copenhagen Business School. In 2016 Eduniversal Best Masters Ranking Supply Chain and Logistics of the following universities rank high: Massachusetts Institute of Technology, KEDGE Business School, Purdue University, Rotterdam School of Management, Pontificia Universidad Catolica del Peru, Universidade Nova de Lisboa, Vienna Economic University and Business and Copenhagen Business School.

Organization

There are a number of organizations that provide certification exams, such as the CSCMP (Council of Supply Chain Management Professionals), IIPMR (International Institute for Procurement and Market Research), APICS (Association of Operations Management), ISCEA (International Supply Chain Education) Alliance) and IoSCM (Institute of Supply Chain Management). The APICS certification is called Certified Supply Chain Professional, or CSCP, and ISCEA certification is called the Certified Supply Chain Manager (CSCM), the CISCM (Chartered Institute of Supply Chain Management) award certificate as < i> Chartered Supply Chain Management Professional (CSCMP). Another, the Institute for Supply Management, is developing a so-called Certified Professional in Supply Management (CPSM) that focuses on procurement and source of supply chain management areas. The Supply Chain Management Association (SCMA) is Canada's premier certification body with a global reciprocal title. The appointment of Supply Chain Management Professional (SCMP) is the title of the supply chain leadership designation.

Topics handled by selected professional supply chain certification programs

The following table compares the topics covered by the selected professional supply chain certification program.

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See also

Association

• INFORMS
• The Institute of Industrial Engineers

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References

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Further reading

• Ferenc Szidarovszky and SÃÆ'¨ndor MolnÃÆ'¡r (2002) Introduction to the Matrix Theory: With Applications for Business and Economics , World Scientific Publishing. Description and preview.
• Cooper, M.C., Lambert, D.M., & amp; Pagh, J. (1997) Supply Chain Management: More Than a New Name for Logistics. International Journal of Logistics Management Vol 8, Iss 1, pp 1-14
• FAO, 2007, Agro-industry supply chain management: Concepts and applications. AGSF Occasional Paper 17 Rome.
• Haag, S., Cummings, M., McCubbrey, D., Pinsonneault, A., & amp; Donovan, R. (2006), Management Information System For Information Age (3rd Canadian Ed.), Canada: McGraw Hill Ryerson ISBNÃ, 0-07-281947-2
• Halldorsson, Arni, Herbert Kotzab & amp; Tage Skjott-Larsen (2003). Interorganizational theory behind Supply Chain Management - discussion and application, In Seuring, Stefan et al. (eds.), Strategy and Organization in Supply Chain, Verlag Physica.
• Halldorsson, A., Kotzab, H., Mikkola, J. H., Skjoett-Larsen, T. (2007). Complementary theory for supply chain management. Supply Chain Management: International Journal, Volume 12 Issue 4, 284-296.
• Handfield, R., and Nichols, E., (1999), Introduction to Supply Chain Management. Prentice Hall, Upper Saddle River, NJ.
• Hines, T. (2004). Supply chain strategy: Triggered customer and customer-focused. Oxford: Elsevier.
• Hopp, W. (2011). Supply Chain. Chicago: Waveland Press.
• Kallrath, J., Maindl, T.I. (2006): Real Optimization with SAPÃ,® APO. Springer ISBN: 3-540-22561-7.
• Kaushik K.D., & amp; Cooper, M. (2000). Management of Industrial Marketing. Volume29, Issue 1, January 2000, Page 65-83
• Ketchen Jr., G., & amp; Hult, T.M. (2006). Bridging organizational theory and supply chain management: The best value-chain supply case. Journal of Operations Management, 25 (2) 573-580.
• Kouvelis, P.; Chambers, C.; Wang, H. (2006): Supply Chain Management for Research and Production and Operations Management: Overview, Trends, and Opportunities. In: Production and Operation Management, Vol. 15, No. 3, pp.Ã, 449-469.
• Larson, P.D. and Halldorsson, A. (2004). Logistics versus supply chain management: international surveys. International Journal of Logistics: Research & amp; Application, Vol. 7, Issue 1, 17-31.
• Movahedi B., Lavassani K., Kumar V. (2009) Transition to B2B e-Marketplace Enabled Supply Chain: Assessment of Readiness and Success Factors, International Journal of Technology, Knowledge and Society, Volume 5, Issue 3, pp.Ã, 75-88.
• Lavassani K., Movahedi B., Kumar V. (2009) Development of Supply Chain Management Theory: B2B Electronic Market Adoption Case, International Journal of Knowledge, Culture and Change Management, Volume 9, 6th Edition, pp.a, 85- 98.
• Mentzer, J.T. et al. (2001): Defining Supply Chain Management, at: Business Logistics Journal , Vol. 22, No. 2, 2001, pp.Ã, 1-25
• Poluha, R.G. (2016) Ã,: Digest of Supply Chain Management: What You Should Know to Manage Your Procurement, Manufacturing, Warehousing and Logistics (Quintessence Series) Processes . First edition. Springer Heidelberg New York Dordrecht London. ISBN: 978-3662485132
• Simchi-Levi D., Kaminsky P., Simchi-levi E. (2007), Designing and Managing Supply Chain, third edition, Mcgraw Hill

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External links

• Detailed outline is SCOR-p
• Definition of Supply Chain Management and Solutions - CIO Magazine 2007

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