supply chain management

(redirected from Supply chain event management)
Also found in: Dictionary, Acronyms, Encyclopedia.

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 ?
Implementation of the Supply Chain Event Management Approach follows a sequence that would be familiar to anyone who has undertaken process improvement activities such as Six Sigma or business process reengineering.
We suggest that the Supply Chain Event Management Approach outlined here is a first step toward making SCEM a true, repeatable improvement technique that can be applied at all levels of a supply chain organization.
Verano's supply chain event management solution provides the capability to monitor alarms, exception conditions and data acquisition in real time.
AllPoints' primary product is the GlassPipeline, an advanced supply chain event management software package.

Full browser ?