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 ?
In June, the New York Times quoted Waller, a professor Who holds the Garrison Endowed Chair in Supply Chain Management, in an article about how retailers are using data in innovative ways in the supply chain.
Dedicated logistics is said to be the last frontier of cost reduction; supply chain management is the horizon of global strategic advantage.
Manugistics, headquartered in Rockville, Maryland, is the leading provider of supply chain management software and services.
Logistics and Supply Chain Management 2007 is produced by Wellesley Information Services (WIS), the publisher of SAP Insider and SAP Professional Journal with permission from SAP AG.
DSC Logistics, a leading supply chain management company with a nationwide network, focuses on supply chain capabilities that are based on changing customer needs.
i2's innovative supply chain management tools and services are pervasive in a wide cross-section of industries; 20 of the AMR Research Top 25 Global Supply Chains belong to i2 customers.
Senior logistics and supply chain management teams from leading companies will share best practices and lessons learned in implementing demand and supply planning, inventory management, RFID, supplier relationship management, supplier adoption, warehouse management, service parts management, and sales and operations planning.
With more than 100 customer-driven educational sessions presented by ASUG and SAP, the ASUG Supply Chain Management Forum is a premier event for supply chain management and supplier relationship management.
As one of our first-ever CSCMP Annual Conference sponsors, we look forward to working with CombineNet to build brand awareness among our elite group of supply chain management decision-makers who will attend CSCMP 2006," said Rick Blasgen, CSCMP president and CEO.
Enporion, the leading provider of sourcing and procurement services for energy and other industries, today announced that it has been ranked among the top 100 supply chain management companies in the country by Supply & Demand Chain Executive magazine.
Supply Chain Execution applications will help drive growth in the Supply Chain Management market.
SeeControl, the leader in on-demand inventory control, visibility, and intelligence, today announced that company President and CEO Garrett Gafke will be a keynote speaker at this year's Stanford Global Supply Chain Management Forum scheduled for Thursday, June 8.

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