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| Supply Chain Management ( SCM ) | ||
| What is SCM | ||
| The ultimate purpose of supply chain management (SCM) is to increase your throughput while reducing your investment and your operating expenses by integrating internal and external operations of procurement, manufacturing and logistics into a synchronized process flow. It is mostly concentrated upon the sources of materials and products, vendor coordination and purchasing. SCM reduces operating expenses through the elimination of unnecessary steps and enhances your throughput by more closely synchronizing products to customer demand. | "The ultimate purpose of supply chain management (SCM) is to increase throughput while reducing investment and operating expense by integrating internal and external operations of procurement, manufacturing and logistics into a synchronized process flow." | |
| SCM is primarily concerned with managing your integration with suppliers, customers, transportation and information providers as it defines and drives the requirements for each. Successful SCM trades off inventory for information whenever possible. It ensures the efficient flow of product and information in a timely and dependable manner which enables you to shift from stock inventory to a continuous flow process. Synchronization of your inventory to your customer demand is the ultimate objective of a well managed supply chain. | ||
| The Case For Utilizing Connected Concepts LLC. | ||
| The specialized skills required for success in supply-chain management are rapidly becoming more advanced and complex. These specialized skills include having the ability to effectively use handling and storage technologies; planning software and supporting infrastructure; data-communications technologies; and decision-support, demand-planning, and advanced transportation-planning and control tools. | ||
| "Synchronization of inventory to customer demand is the ultimate objective of a well managed supply chain." | Today, many companies participate in an extended supply chain to some degree. Over the past three years, in particular, applications of the extended supply-chain concept have increased geometrically. You need the specialized expertise of consultants, like Connected Concepts, to assist you in building and improving your supply chain management. | |
| Most companies are splitting into one of two groups: those struggling to put in place the basics of supply-chain management, and those that have mastered the basics and are experimenting with advanced approaches. Where do you stand? As supply-chain management increases in strategic importance,if you are struggling to make the basics work you will be at an increasing disadvantage. If you are going to manage supply chains, there are three things you have to manage: variability, visibility, and velocity. Everything is driven by market demand. But you need to realize that integrating systems is more than computers. Integrating systems is integrating business processes, and then data and systems. This requires specialized skills that a consulting firm, like Connected Concepts, brings as part of its value added services. | ||
Although many companies are implementing systems to help manage supply chains, the deployment of these systems is at a single enterprise level. True channel-wide supply-chain deployment or even true channel-wide supply-chain optimization or management is still missing from 99 percent of most industries. To date, enterprise systems have been designed to focus on a standard data model, standard business processes, and a standard business model. While that's fine in the confines of a closed enterprise where a single company can control and dictate processes, standards, and data, they cannot do that to all of the partners who comprise a supply chain. |
"Everything is driven by
market demand."
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| The architecture needed to connect supply-chain partners must be grounded in the ability to resolve the measurements and the meaning of data between very different processes used by various supply-chain members. This requires the development of mutual trust and cooperation between potentially different cultures and companies. A common understanding of the roles and relationship of each partner in forming a virtual enterprise is required. This can be facilitated by third party consulting firms, like Connected Concepts, acting as the cross-partner bridges of implementation. Connected Concepts is well positioned to analyze each partners business processes and find the most effective ways to integrate those processes and their underlying data. New measurements that focus everyone on achieving the common goal must be implemented. The key to supply-chain excellence is the ability to extend your business into your customers' and your trading partners' operations. Those companies that are highly successful with supply-chain management will compete on their ability to work rapidly with customers and trading partners to create new and unique products and solutions. | ||
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© Connected Concepts LLC.| 5579 B Chamblee Dunwoody Rd. Suite 131| Atlanta GA. 30338 | 770-481-9992 |
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