Supply Chain Management/SCM or Logistics is a very Important and crucial part of any small, medium or Big businesses related to goods. We can consider the Supply chain management as a whole network which creates a bridge between the producer and the customers. Supply Chain Management is the rib of any business, So it’s very responsible career opportunity for youngsters.
Basically, a Supply Chain Management system can Explained as Monitoring and controlling the activities right from supplier’s supplier to customer’s customer. Conducted research proves that three groups of supply chain strategic decisions could be distinguished: supply chain structure forming, relations crafting and supply and demand synchronization. The listed decisions reflect three levels of organization strategy: corporate (supply chain structure), business (relations) and functional (synchronization). Transaction costs and strategic positioning theories provide comprehensive basis for supply chain strategic decision analysis.
Before 1950s, Military terms are thought for logistics because it had to do procurement, maintenance, and transportation of military facilities. Educational courses and programs at the time were not focused on logistics or distribution. They are commonly related to individual activities such as transportation and purchasing. Hence, there was no opportunity for managers to study or analyse about the basic concepts of logistics. The first college course and textbook for logistics appeared around 1960. It contains the activities such as transportation, inventory control, warehousing, and facility location etc. After 1970s a new name such as Supply chain management(SCM) emerges. The new name origin seems to a mystery and the term supply chain management is compared with physical distribution and logistics. In Basic terms, we can say that it is a fulfillment of the promise. Transportation of goods from one business to another requires the coordination of demand and supply between different organizations in the channel.
There are 8 key sub-processes for supply chain management. They are: –
- Manufacturing flow management
- Supplier relationship management
- Product development and commercialization
- Returns management.
- Customer relationship management
- Customer service management
- Demand management
- Order fulfillment
Undoubtedly We can say that logistics and supply chain management will continue to grow in importance as companies continue to pursue outsourcing, enhance their international trade operations, and do business and exchange in a global economic environment.