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 ?
The companies are working together to provide customers with advances in demand chain management, such as networking and processing advancements.
Through the unique combination of Pivotal's demand chain management applications running on the Microsoft's family of .NET Enterprise Servers, and Intel's infrastructure expertise, customers will benefit from greater speed, scalability and business agility."
"Through demand chain management, TNT can link and re-link our own logistics and distribution networks with customer assets or even third-party providers to meet the specific and changing needs of businesses selling their products over the internet.
The company brings advanced eBusiness, CRM, demand chain management and enterprise project management expertise to enable companies to create results-driven strategies that drive revenue generation and customer retention."
Pivotal's enterprise-class architecture eliminates the massive cost commonly required to integrate demand chain management applications with other enterprise applications such as supply chain, logistics and ERP applications.
Pivotal ePower is a three-tier, XML-based demand chain management platform that provides the architecture, software capabilities and tools to easily create, rapidly deploy and cost-effectively maintain multi-lingual applications that are accessible via Web, wireless, LAN, WAN, networks and client devices.
Although supply chain management is widely recognized now as a core component of global competitiveness, demand chain management is often overlooked.
Demand chain management, at first glance, might seem basic and fundamental.
This article examines two demand chain management leaders, both giant retailers but ones that operate in two very different markets.