Supply Chain and Operations Management Free Essay Example, 4250 words

According to the AIMS' Institute of Supply Chain Management, it is a management of a global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash. Supply Chain Management (SCM) is the management of the relationship between the supplier's supplier and the customer's customer through the supply chain participants (Distributor/Wholesaler and Retailer) between them, mainly using information flow and logistics activities to gain Competitive advantage and customer satisfaction. A supply chain, as opposed to supply chain management, is a set of organizations directly linked by one or more upstream and downstream flows of products, services, finances, or information from a source to a customer. Supply chain management is the management of such a chain. In many cases, the supply chain includes the collection of goods after consumer use for recycling. SCM is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. We will write a custom essay sample on Supply Chain and Operations Management or any topic specifically for you Only $17.96 $11.86/pageorder now As organizations strive to focus on core competencies and becoming more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform the activities better or more cost-effectively. The effect is to increase the number of organizations involved in satisfying customer demand while reducing managerial control of daily logistics operations. Less control and more supply chain partners led to the creation of the concept of supply chain management. The purpose of supply chain management is to improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement.