Supply chain management (SCM) involves :: integrating and managing the flow of supplies throughout the inputs, transformation processes (throughput and value adding) and outputs to best meet the needs of customers.
The supply chain for a good can be better understood by starting with the final good and then tracing backwards through all processes that add value, all the way to its inputs.
There are three key aspects to supply chain management:
logistics
e-commerce
global sourcing.
logistics
logistics is
?
a term broadly referring to distribution but includes concerns of:
transportation (including transportation modes)
the use of storage, warehousing and distribution centres
materials handling and packaging
Distribution
Distribution is :: the method of delivering goods or services to the customer.
Transportation and distribution
concerning the physical movement of inventories
Various modes of transportation can be used
Storage, warehousing and distribution centres
Storage involves :: finding a secure place to hold stock until it is required.
.
Warehousing is :: the use of a facility for the storage, protection and, later, distribution of stock
.
Distribution centres (DCs):
A distribution centre is slightly different to a warehouse in that it is not intended for long-term storage.
i.e. Amazon fulfilment centres
Materials handling and packaging
Materials handling is an important aspect of the movement and storage of goods
e-commerce
e-commerce involves:: the buying and selling of goods and services via the internet
e-procurement is :: the use of online systems to manage supply, which allows suppliers direct access to the business’s level of supplies
