ABCM Consulting |
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Supply Chain ManagementShortened product life cycles, increased competition, and heightened expectations of customers have forced many leading edge companies to move from physical logistic management towards more advanced supply chain management. Additionally, in recent years it has become clear that many companies have reduced their manufacturing costs as much as it is practically possible. Therefore, in many cases, the only possible way to further reduce costs and lead times is with effective supply chain management.In addition to cost reduction, the supply chain management approach also
facilitates customer service improvements. It enables the management of
inventories, transportation systems and whole distribution networks so that
organizations are able meet or even exceed their customers' expectations. To simplify the concept, supply chain management can be defined as a loop: it
starts with the customer and ends with the customer. All materials, finished
products, information, and even all transactions flow through the loop. However,
supply chain management can be a very difficult task because in the reality, the
supply chain is a complex and dynamic network of facilities and organizations
with different, conflicting objectives.
What has then enabled the effective implementation of supply chain
management? The answer is found from the rapid developments in information and
communications technologies. Use of databases, communication systems, and
foremost advanced computer software are crucial for the development of a modern
cost-effective supply chain management. |
