The strategic role of Supply chain management in manufacturing industry

Essay by dlmlyUniversity, Master'sC+, April 2004

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I Introduction

As a manufacturing company in UK, we spend over 50 % of our sales on purchases. Because such a high percentage of an organization's costs are determined by purchasing, relationships with suppliers are increasingly integrated and long-term. Joint efforts that improve innovation, speed design, and reduce costs are common. Such efforts can dramatically improve both partners' competitiveness. Consequently, a discipline known as supply-chain management has developed.

My presentation in the form of a report will cover the following topics regarding the function of Supply Chain Management: The Strategic Role that can be associated with this function and an analysis of what is involved in the successful implementation of this role. An outline of how can SCM meet globalisation challenges.

II The definition of SCM

1.What is supply chain?

A supply chain as a whole can be viewed as the flow of water in a river: organizations located closer to the original source of supply are described as being 'upstream', while those located closer to the end customer are 'downstream'.

The flow of the whole river is being concerned. In other words, supply chain is a network, which for tangible goods covers purchasing of raw materials, manufacturing, assembly and distribution of finished goods to the client.

In manufacturing, just like our company, the supply chain is the linkage for the physical movement of all materials from suppliers, through transformation, and then as finished goods for the customers.

2.What is SCM

Supply-chain management is one of the hot topics in business today. The idea is to apply a total systems approach to managing the entire flow of information, materials, and services from raw-materials suppliers through factories and warehouses to the end customers. The focus is on those core activities that a business must operate each day to...