Supply Chain Management as an Enabler of Business

SUPPLY CHAIN MANAGEMENT AS AN ENABLER OF BUSINESS COMPETITIVENESS   Before getting into how well we can integrate the concept of supply chain management in any business process we have to at first understand: § WHAT supply chain management is? § WHY it should be followed for a smooth flow of any business? § WHEN a business entity needs to adopt it? § WHO are stakeholders’ of this implementation? § WHERE can this be necessarily be used? § HOW can it be implemented in any business process? and what will be the additional cost to company in adopting this concept which will yield them a success   SUPPLY CHAIN MANAGEMENT: Supply chain management is a set of approaches utilized to efficiently integrate suppliers, manufacturers, warehouses, and stores, so that merchandise is produced and distributed at the right quantities, to the right locations, and at the right time, in order to minimize system wide costs While satisfying service level requirements. In a layman language Supply Chain Management is the activities that help a whole process to get over by getting good results and profits and satisfying all needs of everyone. It takes into consideration every facility that has an impact on cost and plays a role in making the product confirm to customer requirements: from suppliers and manufacturing facilities through warehouses and distribution centres to retailers and stores The second objective of supply chain management is to be efficient and cost effective across the entire system from distribution to inventories of raw materials, work in progress, and finished goods. Hence the emphasis is not only on minimizing transportation cost or reducing inventories but, rather, on taking a systems approach to supply chain management.   ENABLER OF BUSINESS COMPETITIVENESS: Usually business can achieve few as mentioned below which are operational excellence, working capital optimisation, sourcing and procurement, Network redesign and distribution, business