supply chain management

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Supply Chain Management

The act or process of ensuring that one's business has the proper supplies in order to continue operations. Supply management involves ensuring that supplies are procured as cheaply as possible. For example, a construction company must procure cement, wood, and nails efficiently and inexpensively; equally, a consulting firm must make sure that research materials are easily available. Large companies often devote whole divisions to supply chain management, giving them budgets of millions of dollars to help the company save money.

There are two basic types of supply chain management: just in time and just in case. A just in time supply chain management strategy involves keeping only enough inventory to meet immediate business needs. This requires constant monitoring but can save a significant amount money. A just in case strategy, on the other hand, keeps a larger inventory to meet unexpected increases in demand. This saves less money (depending on the nature of the business and matters like carrying costs) but can be easier to manage.

supply chain management

a term used to describe the management of inventory (STOCK), not only within a firm but also along the network of suppliers and customers which constitute the SUPPLY CHAIN or VALUE-ADDED CHAIN. Supply chain management employs a variety of methods such as STOCK CONTROL, MATERIALS REQUIREMENT PLANNING and DISTRIBUTED REQUIREMENT PLANNING to both minimize stock-holding costs while maintaining effective distributed levels of servicing customer orders. See SUPPLIER DEVELOPMENT.
References in periodicals archive ?
Through the unique combination of Pivotal's demand chain management applications running on the Microsoft's family of .
In addition to the demand chain management and service supply chain series, the year-long Webinar program includes discussions on master data management (MDM) and supply chain management.
The SeeChain application complements the capabilities of the Teradata Demand Chain Management and Teradata Supply Chain Intelligence applications by providing visibility to item-/location-level detail and also the ability to monitor, measure, manage and analyze supply chain operations and take corrective action on exceptions.
Part one of the three-part demand chain management series, "Transforming E-Commerce in the Extended Enterprise," is Feb.
This year-long Webinar series will focus on four key areas in which companies can build competitive advantage in their extended enterprises: demand chain management, supply chain management, the service supply chain, and master data management.
Supply & Demand Chain Executive is the executive's user manual for successful supply chain transformation, utilizing hard-hitting analysis, viewpoints and unbiased case studies to steer supply and demand chain management professionals through the complicated, yet critical, world of supply and demand chain management as competitive advantage.