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My Introspective

by Laurus Nobilis
My BrainCast

Supply Chain

Supply Chain Management:

Supply Chain Activities (E)

Supply Chain Management


What was the evolution history of supply chain management? What are the main components of supply chain? How big is the importance of supply chain integration?


Posted: Jul 2011









The supply chain is composed of different segments that are related to different activities. In order to provide the product, the supply chain needs to perform the various activities that extend to different areas, from procurement to customer service.

ProcurementProcurement. Activities related to the purchasing of all goods and services required by a specific company to operate their business.

Order Processing Order processing. Functions needed to capture customers' orders, such as order receipt, order picking, and order shipment.


Demand and Supply Planning

Supply chain management plays a very important role within the company. The supply chain generate most of the costs of the company, due to the width and complexity of the function (manufacturing, warehouse, distribution). Any inefficiency can create tremendous negative impact to the company. On the other hand, good supply chain management can bring huge benefits and competitive advantage to the company.

Demand & Supply Planning. Process of forecasting customer demand, actual sales, and current inventory levels on stock.

Inventory Management

 Inventory Management. Expands through different activities in order to track stock levels – including forecasting, positioning of stock, and the tracking of product age and availability.

WarehousingWarehousing. The keeping of goods with an emphasis on moving product into, through, and out of warehouses in a timely and accurate manner.


TransportationTransportation. Movement of products from one destination to another. Transportation can involve different transport methods, depending on the business, market and infrastructure specifics.

Customer serviceCustomer service. Includes all sales or after-sales related activities that occur between the buyer and seller. These functions include order status, post-sale support, etc.  

All these processes within supply chain can be mapped to and associated with the majority of the five components of the supply chain (suppliers, manufacturers, distributors, retailers, and consumers). Still, for most, there are a few components that are more closely tied with that particular activity.


Continue Reading:

Overview of Supply Chain Components
Historical Development of Supply Chain
Traditional and Modern View to Supply Chain
Supply Chain Activities
Order Processing
Demand and Supply Planning
Inventory Management
Customer Care
Integrated Supply Chain
Financial Resources
Integration vs. Non-Integration

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