What are the concepts of supply chain?

What are the concepts of supply chain?

A supply chain is a network between a company and its suppliers to produce and distribute a specific product or service. The entities in the supply chain include producers, vendors, warehouses, transportation companies, distribution centers, and retailers.

What are the 5 major supply chain drivers?

Five supply chain drivers, Production, Inventory, Location, Transportation, and Information, influence the performance of the supply chain.

What is the main concept of supply chain management?

Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

What are the main concepts between supply chain and logistics?

The basic difference between Logistics and Supply Chain Management is that Logistics management is the process of integration and maintenance (flow and storage) of goods in an organization whereas Supply Chain Management is the coordination and management (movement) of supply chains of an organization.

What are the 6 supply chain drivers?

– There are 6 drivers in a SC; facilities, inventory, transportation, information, sourcing, pricing and each of these drivers have their own roles in the drivers decision.

What are the 6 drivers of supply chain management?

What are the Drivers of Supply Chain Management

  • Production. The performance of the supply chain is very much dependent on a production like, what is produced, how it is produced (the manufacturing process used), and when it has to be produced.
  • Inventory.
  • Transportation.
  • Facility Location.
  • Information.
  • Sourcing.
  • Pricing.

What are the objectives of a supply chain?

To maximize overall value generated. Higher SCM profitability,higher success: The higher the supply chain profitability or surplus,the more successful is the supply chain.

  • To look for Sources of Revenue and Cost. There is only one source of Revenue i.e. customer.
  • Replenishment of the Material or Product whenever required. Replenishment means the restoration of a stock or supply to a former level or condition.
  • What are the five basic supply chain activities?

    Five general activities make up the primary activities of the value chain – inbound logistics, operations, outbound logistics, marketing and sales and services. The specific activities found in the five primary activities vary per industry. Inbound logistics consist of receiving and storing material goods for use and inventory control.

    What are the basic principles of Supply Chain Management?

    Applying all Five Principles of Supply Chain Management is necessary for the effective design and execution of supply chain systems: Know the customer. Adopt Lean philosophies. Create a supply chain information infrastructure. Integrate business processes. Unify decision support systems. Know the customer.

    What are the steps in supply chain?

    A supply chain involves a series of steps involved to get a product or service to the customer. The steps include moving and transforming raw materials into finished products, transporting those products, and distributing them to the end user.