Supply chain management is the management of the flow of goods. It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption. It is the streamlining of a business' supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. Supply chain management represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production, to product development, to the information systems needed to ...view middle of the document...
The term ‘supply chain management’ was originally introduced by consultants in the early 1980s(Engel,2011). Typically, a supply chain is simply a network of materials, information and services processing links with the characteristics of supply, transformation and demand.
The term ‘supply chain management’ has not only been used to explain the logistics activities and the planning and control of materials and information flows internally within a company or externally between companies researchers have also used it to describe strategic, inter-organizational issues.(Engel,2011).
Today many large companies rely on supply chain management in order to keep their business growing. Coca Cola is one of the largest companies to rely on supply chain management to keep the product at number 1. Coca Cola has been one the top soda companies for over 100 yrs now and it owes its success in part to supply chain. For instance in 2010, Coca Cola sold its North American operations, while retaining its European territories and acquired new bottling rights for Sweden and Norway. As a part of this, Coca Cola also set out to deploy a new supply chain management solution at all 17 of its European plants. The new system would replace and automate many of Coca Cola Enterprise’s supply chain processes and required new skill sets to ensure the required speed of deployment. ( Sapardinis,2014)
“We are a shelf-replenishment company, a supply chain company, a sales and customer services company,” says Esat Sezer, senior vice president and chief information officer of CCE. “It is very important for us to integrate our manufacturing plants all the way up to the replenishment of shelves in the retail outlets. Through the information side of the equation, we are basically tying those two ends of the business process together: the manufacturing side, which drives the supply of our product, and the shelf-replenishment side, which drives the demand part of our product.”
In conclusion, supply chain management plays a major role in helping businesses grow and develop. As I mentioned earlier the main elements of a supply chain include purchasing, operations,...