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Comprehensive Overview of Supply Chain Management Principles and Practices

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This text delves into the critical aspects of Supply Chain Management (SCM), focusing on the management of information and material flow to achieve three primary objectives: minimizing capital in inventory, reducing delivery times, and increasing sales by meeting customer demands. It highlights the importance of sustainability and lays out SCM activities across strategic, tactical, and operational levels. Additionally, the integrated approach to SCM fosters long-term relationships and improvements, following a four-step methodology to assess, redesign, control, and continuously improve supply chain processes.

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Comprehensive Overview of Supply Chain Management Principles and Practices

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  1. Supply Chain Management Martin Andersson Mathias Högberg Konrad Wladyko

  2. General information about SCM • SCM is the management of information and material flow • SCM has three primary objectives: -to minimize the capital tied up in inventory. -reducing delivery times. -increase sales by better satisfy the customers demands.

  3. Sustainability • Business issue • Comparedwith SECH ratings S-social E-ethical C-cultural H-health

  4. Supply Chain Activities • Can be grouped in 3 different levels: • Strategic level • Tactical level • Operational level • Strategic level • Strategic network optimization • Product life cycle management • Where-to-make and make-buy decisions • Aligning overall organizational strategy with supply strategy

  5. Supply Chain Activities • Tactical level • Sourcing contracts and other purchasing decisions • Production decisions • Milestone payments • Focus on customer demands and habits • Operational level • Daily production and distribution planning • Production scheduling • Production operations • Outbound operations

  6. Integrated Supply Chain • Long-Term Relationships • Benefits • Reduced real costs • Greater certainty of out-turn costs • More repeat business with key-clients • Delivery of better underlying value to client • Generic SCM Methodology • Is divided in 4-steps. Assess, redesign, control and improve. Step 1: Assess the current process in order to detect actual waste and problems, and here find their root causes. Step 2: Redesign the supply chain in order to introduce structural resolution of the problem. Step 3: Control the chain according to its new configuration. It’s done by continuously asses how it operates. Improvement is an ongoing task to continuously develop the supply chain.

  7. References and further reading • BrianCooke, Peter Williams, 2010. Construction Planning, Programming and control, third edition.

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