Supply Chain Administration – an Introduction

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Supply Chain Administration – an Introduction

The precept of ‘Survival of the fittest’ stays valid in the present world economy characterised by the presence of ever altering enterprise environment. Each trendy company must battle for the existence & development under such a competitive environment. One surest way to achieve this is to supply finest quality of product at reasonable rate, which suits well to the requirements of goal customer. To impart a feeling of delight in the minds of consumers and provide quality product at reasonable price manufacturer has to convey shift in his emphasis from mere cost ascertainment to value reduction to reduce price of production. Thus, value reduction is the principle managerial mantra as as soon as quoted by well-known strategist Michael.E.Porter in his landmark book “Competitive Strategy”. There are number of strategic cost administration techniques available like Supply Chain Management (SCM) , Business Process Re-engineering (Worth Re-engineering), Total Productive Maintenance to reduce cost. Of these Supply Chain Management is prominent tool to reduce cost. In this backdrop the present paper aims to highlight the conceptual framework of SCM, Modus Operandi and its relevance for corporate world in the new millennium.

Supply Chain Management has grow to be a really highly effective method as it will increase the responsiveness to the changing business conditions and enhances the competitiveness of the organization. In right now’s intense competition, and more and more global financial system, to survive and develop, organization should improve their market responsiveness and turn out to be price competitive. The provision Chain framework is a method of breaking down the linked set of value creating activities from primary raw materials/element provider to the supply of the tip product to customer/consumer.

A supply chain is a business process that links manufacturers, retailers, clients and suppliers within the form of a chain to, develop and deliver products as a single virtual group of pooled abilities and resources. Supply chain management is process of synchronizing the circulation of physical items and associated info from the production line of low stage component suppliers to the end shopper, ensuing in the provision of early notice of demand fluctuations and synchronization of enterprise processes amongst all the co-working organizations in this supply chain.


Definitions from well-revered references have diverse in the course of the past decade. For example, Supply Chain Yearbook 2000 described SCM as, “A series of processes that facilitates business activities between trading partners, from the purchase of raw items and materials for manufacturing to delivery of a finished product to an end user.” APICS-The Performance Advantage, offered this definition in January 1999: “The global network used to deliver products and providers from raw materials to end prospects via an engineered circulate of information, physical distribution and cash.”

This is a little change from the 1997 definition, Logistics Administration offered, describing SCM as, “The delivery of enhanced customer and economic value via synchronized administration of the move of physical goods and related info from sourcing to consumption.” The definition evolution continues as European Logistics Association, in 1995 advised SCM was, “The group, planning, control and execution of the products move from development and purchasing by production and distribution to the ultimate customer with a view to satisfy the necessities of the market at minimal cost and minimum capital use.”

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