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It
is obvious that the mission of supply chain is to
plan and co-ordinate all those activities
necessary to achieve desired levels of delivered
service and quality at lowest possible cost.
Supply Chain must therefore be seen as the link
between the marketplace and the supply base. The
Supply Chain spans the organization, from the
management of raw materials through to the
delivery of the final product.
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Supply
Chain Management is provides that the needs of customers
are satisfied through the co-ordination of the materials
and information flows that extend from the marketplace,
through the firm and its operations and beyond that to
suppliers. To achieve this company-wide integration
requires a quite different orientation than that
typically encountered in the conventional organization.
For
example, for many years marketing and production have
been seen as separate activities within the
organization. At best they have coexisted, at worst
there has been the conflict of interests. Production
priorities and objectives have typically been focused on
operating efficiency, achieved through long production
runs, minimized set-ups and change-overs and product
standardization. On the other hand, marketing has sought
to achieve competitive advantage through variety, high
service levels and frequent product changes.
In
today's more turbulent environment it is impossible that
production and marketing act independently of each
other. The conflicting interests of production and
marketing are clearly counter-productive to the
achievement of overall corporate goals.
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is the reason why both marketing and production
have become the focus of business attention.
Marketing as a concept of customer orientation now
enjoys a wide acceptance. It is now generally
accepted that the need to understand and meet
customer requirements is a prerequisite for
survival. At the same time, in the search for
improved cost competitiveness, manufacturing
management has been the subject of a significant
changes. The recent years has shown the
introduction of flexible manufacturing systems, of
new approaches to inventory based on materials
requirements planning and just-in-time concept and sustained emphasis on total
quality management.
Also
it has been recognized that the procurement plays
a crucial role in creating and sustaining
competitive advantage as part of an integrated
logistics process. Leading organizations now
routinely include supply-side issues in the
development of their strategic plans. It is not
only that the cost of purchased materials and
supplies a significant part of total costs in most
organizations, but there is a major opportunity
for leveraging the capabilities and competencies
of suppliers through closer integration of
customer-supplier process.
As
an conclusion, the Supply Chain is crucial for
integrative concept that seeks to develop a wide
view of the firm. It is fundamentally a supply
chain planning concept that seeks to create a
framework through which the needs of the
marketplace can be transferred into a production
strategy and plan. In return it links into the
strategy for procurement. As best solution there
should be an integrated business plan which for
marketing, distribution, production and
procurement. This is the role of the Supply Chain.
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Recommended
reading:
An
Introduction To Supply Chain Management
Making
The Most Of Your Supply Chain Metrics To Leverage
Competitive Advantage
Supply
Chain Management 101
The Fundamentals Of Supply Chain ROI
Supply Chain
Concept
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