Supply chain management, techniques with the aim of coordinating all parts of SC, from supplying raw materials to delivering and/or resumption of products, tries to minimize total costs with respect to existing conflicts among the chain partners. An example of these conflicts is the interrelation between the sale department desiring to have higher inventory levels to fulfill demands and the warehouse for which lower inventories are desired to reduce holding costs.[13]
In the mid-1990s, the term "supply chain management" gained currency when a flurry of articles and books came out on the subject. Supply chains were originally defined as encompassing all activities associated with the flow and transformation of goods from raw materials through to the end user, as well as the associated information flows. Supply-chain management was then further defined as the integration of supply chain activities through improved supply-chain relationships to achieve a competitive advantage.[14]
Essentials of Supply Chain Management, Third Edition books pdf file
A supply chain, as opposed to supply-chain management, is a set of organizations directly linked by one or more upstream and downstream flows of products, services, finances, or information from a source to a customer. Supply-chain management is the management of such a chain.[20]
The security-management system for supply chains is described in ISO/IEC 28000 and ISO/IEC 28001 and related standards published jointly by the ISO and the IEC. Supply-Chain Management draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.
An important element of SCM is supply chain resilience, defined as "the capacity of a supply chain to persist, adapt, or transform in the face of change".[53] For a long time, the interpretation of resilience in the sense of engineering resilience (= robustness[54]) prevailed in supply chain management, leading to the notion of persistence.[53] A popular implementation of this idea is given by measuring the time-to-survive and the time-to-recover of the supply chain, allowing to identify weak points in the system.[55]
It is the third movement of supply-chain-management development, the globalization era, can be characterized by the attention given to global systems of supplier relationships and the expansion of supply chains beyond national boundaries and into other continents. Although the use of global sources in organizations' supply chains can be traced back several decades (e.g., in the oil industry), it was not until the late 1980s that a considerable number of organizations started to integrate global sources into their core business.[citation needed] This era is characterized by the globalization of supply-chain management in organizations with the goal of increasing their competitive advantage, adding value, and reducing costs through global sourcing.[citation needed]
In the study of supply-chain management, the concept of centroids has become a useful economic consideration. In mathematics and physics, a centroid is the arithmetic mean position of all the points in a plane figure.[76] For supply chain management, a centroid is a location with a high proportion of a country's population and a high proportion of its manufacturing, generally within 500 mi (805 km). In the US, two major supply chain centroids have been defined, one near Dayton, Ohio, and a second near Riverside, California.[citation needed]
Supply chain networks are integral to an economy, but the health of chains is dependent on the well-being of the environment and society.[86] Supply-chain sustainability is a business issue affecting an organization's supply chain or logistics network, and is frequently quantified by comparison with SECH ratings, which use a triple bottom line incorporating economic, social, and environmental aspects.[87] While SECH ratings are defined as social, ethical, cultural, and health footprints, the more commonly used ESG moniker stands for Environment, Social and Governance. Consumers have become more aware of the environmental impact of their purchases and companies' ratings and, along with non-governmental organizations (NGOs), are setting the agenda, and beginning to push, for transitions to more sustainable approaches such as organically grown foods, anti-sweatshop labor codes, and locally produced goods that support independent and small businesses. Because supply chains may account for over 75% of a company's carbon footprint, many organizations are exploring ways to reduce this and thus improve their profile.
Beyond design and maintenance of a supply chain itself, supply chain professionals participate in aspects of business that have a bearing on supply chains, such as sales forecasting, quality management, strategy development, customer service, and systems analysis. Production of a good may evolve over time, rendering an existing supply chain design obsolete. Supply chain professionals need to be aware of changes in production and business climate that affect supply chains and create alternative supply chains as the need arises.
Supply chain professionals need to have knowledge of managing supply chain functions such as transportation, warehousing, inventory management, and production planning. In the past, supply chain professionals emphasized logistics skills, such as knowledge of shipping routes, familiarity with warehousing equipment and distribution center locations and footprints, and a solid grasp of freight rates and fuel costs. More recently, supply-chain management extends to logistical support across firms and management of global supply chains.[140] Supply chain professionals need to have an understanding of business continuity basics and strategies.[141]
Individuals working in supply-chain management can attain professional certification by passing an exam developed by a third party certification organization. The purpose of certification is to guarantee a certain level of expertise in the field. The knowledge needed to pass a certification exam may be gained from several sources. Some knowledge may come from college courses, but most of it is acquired from a mix of on-the-job learning experiences, attending industry events, learning best practices with their peers, and reading books and articles in the field.[142] Certification organizations may provide certification workshops tailored to their exams.[143]
A number of organizations provide certification in supply chain management, such as the Council of Supply Chain Management Professionals (CSCMP),[146] IIPMR (International Institute for Procurement and Market Research), APICS (the Association for Operations Management), ISCEA (International Supply Chain Education Alliance) and IoSCM (Institute of Supply Chain Management). APICS' certification is called Certified Supply Chain Professional, or CSCP, and ISCEA's certification is called the Certified Supply Chain Manager (CSCM), CISCM (Chartered Institute of Supply Chain Management) awards certificate as Chartered Supply Chain Management Professional (CSCMP). Another, the Institute for Supply Management, is developing one called the Certified Professional in Supply Management (CPSM)[147] focused on the procurement and sourcing areas of supply-chain management. The Supply Chain Management Association (SCMA) is the main certifying body for Canada with the designations having global reciprocity. The designation Supply Chain Management Professional (SCMP) is the title of the supply chain leadership designation.
Any supply chain leader that wants to make progress in the business needs to be open to learning. Even when you are at the top, you still need to prioritize education yourself so you can stay on top. Reading books about management practices can add on to your current experience and improve your strategies.
Leadership books which focus on supply chain management will give you all the techniques and tools you need for success. Considering that there are many options, this list of five essential books about supply chain management will narrow down your choice.
The SCPro Council of Supply Chain Management Fundamentals certification is an entry-level supply chain management certification that offers eight certification tracks that cover the most important aspects of SCM. These tracks include supply chain management principles, transportation operations, demand planning, manufacturing and service operations, customer service operations, warehouse operations, inventory management, supply management, and procurement. There are no eligibility requirements and each exam for the eight tracks consists of a 40-question multiple-choice format and the credentials do not expire or need renewal. 2ff7e9595c
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