Objectives of Supply Chain Management

Supply Chain Mangement is consists of all parties (Including Manufacturer, Marketer, Suppliers, transporters, Warehouses, Retailers and even customers) directly or indirectly involved in fullfilment of a customer.The main objectives of Supply chain management are to improve the overall organization performance and customer satisfaction by improving product or service delivery to consumer.

Supply Chain Management involves Movement and Storage of all materials including Raw Material, WIP (Work in Progress) and Finished Goods.

The below said are the various objectives of Supply Chain Management which are also applicable for International Logistics and Supply Chain management.

1. To maximize overall value generated

The higher the supply chain profitability or surplus, the more successful is the supply chain.

The supply chain profitability is the difference between the amount paid by consumer to purchase the product and the cost incurred by organization to produce and supply the product to the customer at right time.

2. To look for Sources of Revenue and Cost

There is only one source of Revenue i.e. customer.

Appropriate management of the flow of information, product or funds is a key to supply chain success.

3. Replenishment of the Material or Product whenever required

4. Cost Quality Improvement

5. Shortening time to Order

6. Faster Speed to Market

7. To meet consumer demand for guaranteed delivery of high quality and low cost with minimal lead time.

8. Efficient supply chain

9.  To achieve world class performance

10. More awareness of supply chain dynamics and efficiency

11. To fulfill customer demand through efficient resources

12. To optimise pre and post production inventory levels

13. Good understanding of business characteristics

14. Provide flexible planning and control mechanism

15. Reduce transportation cost

16. Greater labour efficiency, equipment and space efficiency

17. To maximize efficiency of distribution side

18. To reduce system wide cost of company to satisfy service level requirement

(Company costs: Manufacturing, Fixed assets, inventories, transportation )

(Service levels: Response time Hrs/day/week/month)

19. Helps in better decision

All these achievements without sacrificing desired level of customer service

Reference Books

1. Supply Chain Management, Strategy, Planning and Operation, 3rd Edition, Sunil Chopra, Peter Meindl, D. V. Kalra, Pearson Education

2. Supply Chain Management, For Global Competitiveness, Second Edition, Editor: B. S. Sahny, MacMillan India Ltd.

3. World Class Supply Management, The Key to Supply Chain Management, Seventh Edition, Burt, Dobler, Starling, Tata McGraw Hill

One Comment

  1. トリーバーチ
    May 27, 2013 @ 12:44:52

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