Supply chain management is the streamlining of a business’ supply-side activities to maximize customer value and to gain a competitive advantage in the marketplace. Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production, to product development, to the information systems needed to direct these undertakings.

The supply chain management processes typically include the following:

  • Customer Relationship Management
  • Supplier Relationship Management
  • Customer Service Management
  • Demand Management
  • Order Fulfillment
  • Manufacturing Flow Management
  • Product Development and Commercialization
  • Returns Management
  • Logistic Management

Our team of experts deeply study the Supply Chain process and their risk drivers including the following:

Disruptions

  • Natural disaster
  • Labor dispute
  • Supplier bankruptcy
  • War and terrorism
  • Dependency on a single source of supply as well as the capacity and responsiveness of alternative suppliers

Delays

  • High capacity utilization at the supply source
  • The inflexibility of supply source
  • Poor quality or yield at the supply source
  • Excessive handling due to border crossings or to change in transportation modes

Systems

  • Information infrastructure breakdown
  • System integration or extensive systems networking
  • E-commerce

Forecast

  • Inaccurate forecasts due to long lead times, seasonality, product variety, short life cycles, small customer base
  • “Bullwhip effect” or information distortion due to sales promotions, incentives, lack of supply-chain visibility and exaggeration of demand in times of product shortage

Intellectual Property

  • Vertical integration of the supply chain
  • Global outsourcing and markets

Procurement

  • Exchange rate risk
  • Percentage of a key component or raw material procured from a single source
  • Industry-wide capacity utilization
  • Long-term versus short-term contracts

Receivables

  • Number of customers
  • The financial strength of customers

Inventory

  • Rate of product obsolescence
  • Inventory holding cost
  • Product value
  • Demand and supply uncertainty

Capacity

  • Cost of capacity
  • Capacity flexibility

Typically, SCM will attempt to centrally control or link the production, shipment, and distribution of a product. By managing the supply chain, companies can cut excess fat and provide products faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales and the inventories of the company’s product purchasers.

SCM is based on the idea that nearly every product that comes to market results from the efforts of various organizations called the supply chain. Although these supply chains have existed for ages until recently most companies have paid only scant attention to them.

We use best-in-class processes, cutting-edge tools and our deep understanding of market-leading supply chain organizations to help enterprises move beyond cost savings and make supply chain their competitive advantage.

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