An Overview of Supply Chain Management

The theory behind Supply Chain Management encompasses the planning and management of the different stages of this process, and includes the sourcing, procurement, logistics and conversion of the products involved. Essentially it is about minimising costs, maximising efficiency, and meeting customer demand.

The activities involved in supply chain management can be grouped into the following areas:

• Tactical
• Strategic
• Operational

Tactical

• Contract sourcing
• Managing production, contracting, and the scheduling of the process
• Making decisions based on the inventory, namely quantity, location and quality
• Implementing  a strategy for transporting the goods
• Comparison of all operations with competitors
• Analysis of customer demand

Strategic

• Optimisation of warehouses and distribution centers, including number, location, etc
• Creating partnerships with suppliers and distributors, and maximising communication channels
• Managing the product life-cycle, so new products can be integrated easily into the supply chain
• Optimised IT infrastructure to assist operations
• Ensuring the operational strategy is in line with supply strategy

Operational

• Planning production and distribution channels
• Scheduling the production down to the last minute
• Planning for customer demand and forecasting future demand
• Managing transportation of goods from suppliers
• Managing the production operations
• Managing external operations, including transfer of products to customers

Supply chain management is increasingly becoming a necessity for organisations to compete globally, and is now a part of the majority of large organisation’s structure. Qube Vocational Development provide Supply Chain Management NVQs, Procurement NVQs and Purchasing NVQs.