Supply Chain Paper

Supply Chain Management Paper

Courtney Ray

Strategic Supply Chain Management ISCOM 370

Adrian Crystal Martin

December 20, 2010

University of Phoenix Online

Introduction

Organizations must rely on effective supply chains to compete in today’s global market. Supply Chain Management is the management of a system of businesses involved in provisions of products and services required by end customers. It includes movement and storage or raw materials, work-in-process inventory, and finished goods from the starting point to the point of consumption (Wikipedia Foundation Inc., 2010). This paper will define supply chain management. An organization that operates in a global environment will be chosen and reviewed along with a description of the evolution of supply chain management at the organization.

Supply Chain Management Definition

Effective supply chains must have interactions at all levels of the supply chain. Supply chains consist of suppliers, manufacturing locations, warehouse and distribution centers, and retail outlets along with raw materials, work-in-process inventory, and finished goods that may go between the facilities.

Supply chain management is the integration of suppliers, manufacturers, warehouses, and stores with the intent to produce and distribute correct quantities to the correct locations at the right time so system-wide costs are minimized while still satisfying service-level requirements. Supply chain management takes into consideration all aspects that impact cost and that enables products to be produced that meet customer requirements. This includes the suppliers, manufacturing facilities, warehouse and distribution centers, and retailers and stores, if applicable. Supply chain management must also be efficient and cost-effective from transportation and distribution to raw material inventory levels, work-in-process, and finished goods. This is all done from the strategic level to the operational level (Simchi-Levi,...