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Discover All About Supply Chain Management

Discover All About Supply Chain Management

10-Feb-2017

Discover All About Supply Chain Management - Linc Group

In the manufacturing industry, there is a need to distribute all products from manufacturing reaching into the hands of customers. And to reach this objective, there’s called Supply Chain Management (SCM), which is run by professional so every process along distribution can be organized well and smooth.

The definition of Supply Chain Management is an integrated coordination of activities between the activities of production, procurement, supply and delivery of products that involve services such as administration, logistics, operations and information processing that connects between customers and suppliers.

For the parties that involved in SCM are suppliers, manufacturers, logistics providers, and of course customers. The aim of the SCM itself that prevent the buildup in inventory in one place, the current production must be coordinated in such a way on a regular basis or synchronous.

There are three flows in the SCM; material flow, information flow, and financial flow. Material flow is the flow of physical products that includes services such as product manufacturing, product shipments, product recycling, and disposal. Moreover, information flow includes the process of setting the customer requests, transmission of orders, and order status reports. While financial flows include activities that associated with payment and credit cards. Broadly speaking SCM focuses on three functions of management such as distribution management, capacity planning and network management, and supply chain development.

Then for SCM activities can be classified into levels of strategic, operational, and tactical. In a strategic level, all in the form of operational activities, distribution, product design, and logistics must be made and coordinated planning. Then at the tactical level, there are activities of procurement contracts and expenditure decision making, production, inventory, and transportation use. The last at the operational level, is their daily production activities, planning and operation of all SCM. 

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