Supply Chain Management (SCM) is the process of flow of goods and services that involve progression and storage of raw organic materials, of work-in-process itemization and of finished goods from the point of influence to the point of expenditure. Supply chain management has been defined as the layout, devising, execution, rule and auditing of supply chain activities with the objective of constructing an aggressive
infrastructure, integrating supply with demand and measuring performance.
The arising pressure to conduct business in a feasible fashion comes from various shareholders, employers, governmental organizations and most of the enterprises in a gradual way demand their suppliers to change their materials into an environmentally friendly one.
Clearly, sustainability issues are adding complications and risks to the already discouraging challenge of governing global supply chains. GEP offers an extensive container of supply chain outsourcing services that help the organizations hitch more standards across the organizations.
Treating the sustainability as essential to operations is the only way the companies can identify and drive the trade-offs and conflicts in their supply chain. They should examine along with the issues such as inventory, cycle time, virtue and production logistics.
Supply chain management involves optimizing your process to maximize both agility and efficiency. Agility is important because clients expect fast service. Increasing speed increases the costs so developing efficiency is also important.
Once you have identified the indebtedness in your prolonged supply chain, you can collaborate with members to make progression. Supply chain management service is concerned with the outlining and administration of activities from support functions to the distribution of end-user services. Sustainability challenges are too complex for the supply chain of any one concern to tackle its own.
Supply chain management is a cross-functional accession that includes guiding the movement of basic materials into an organization, converting the materials into finished goods and movement of polished goods out to the organization and towards the consumer. Supply chain management associates the field of Logistics.
Some of the variety of services to address all the aspects of the supply chain includes:
- Vision and Strategy
- Operating Model
- Value Transformation and Optimization
- Daily forecasting capability
- Enhanced vendor-managed inventory planning and simulation
An organization’s supply chain is related to its successful development and with a burden to deliver multiple, often-incompatible aspiration of cost optimization, incompatibility and magnificent consumer service.
When sustainability issues increases the complexity and risks to the already frightening challenge of managing global supply chains, the companies have to look pursue structural change as a strategy rather than looking for substitutions which will bring undesirable consequences in the long term. The best example is like how Esquel, the major cotton fabric exporter in China, acted in this kind of situation.
Source: https://hbr.org/2010/10/dont-tweak-your-supply-chain-rethink-it-end-to-end
