What is the term for the entire chain of suppliers through manufacturing and distribution to the customer?
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What is supply chain management (Guide to SCM)What is supply chain management (SCM)?Supply chain management is the process of delivering a product from raw material to the consumer. It includes supply planning, product planning, demand planning, sales and operations planning, and supply management. Why supply chain management is importantA positive or negative impact on the supply chain resounds throughout the business. There are two core areas to the impact: customer happiness and ROI. Happy customer = happy business = higher performance In January 2018, Tobin Moore from Optoro pointed out this striking statistic at Retail’s Big Show: If a customer is happy with the way their return process was handled, they’re 71 percent more likely to become a repeat customer. A smooth return process means an effective supply chain, one that’s well connected and involves communication along the chain. When the supply chain meets or exceeds the expectations of the customer, it’s because of efficiencies. The entire business benefits through higher-order rates, positive sentiment in the customer’s mind, and lower cost-to-serve for the business. Higher performance = more cost efficiency = higher pressure? Higher performance is measured in terms of the efficiency of all processes and people to move goods and services to market along the supply chain. Increased supply chain efficiency can translate to pressure on the team and their capabilities, as costs and budgets are held flat or reduced when they’re expected to move the same or a greater volume of product at the same or a higher quality level. Improvements to profits for the business are measured via metrics like working capital turnover or cash conversion performance; as business health improves, profitable cash management and revenue conversion are the result. Flattening the cost curve often becomes a challenge unless two factors are considered: new capabilities (process and data) that drive faster, higher-quality decisions; and using a tool that scales favorably for the value it delivers for the business. What is the supply chain management process?The supply chain management process is composed of four main parts: demand management, supply management, S&OP, and product portfolio management. 1. Demand managementDemand management consists of three parts: demand planning, merchandise planning, and trade promotion planning.
2. Supply managementSupply management is made up of five areas: supply planning, production planning, inventory planning, capacity planning, and distribution planning.
3. Sales and operations planning (S&OP)
4. Product portfolio managementProduct portfolio management is the process from creating a product idea creation to market introduction. A company must have an exit strategy for its product when it reaches the end of its profitable life or in case the product doesn’t sell well. Product portfolio management includes:
5. Supply chain management best practicesTo succeed in a growing global market, you need a supply chain that’s connected from start to finish, across your enterprise and beyond. Here are five steps we recommend to achieve connected supply chain planning.
Important Supply chain trendsWhat will the supply chain look like in the future? Here are a few key trends in supply chain management. Artificial intelligence and machine learning History-based forecasting is used to drive supply chain planning, but artificial intelligence (AI) and machine learning (ML) are primed to change that forever. AI- and ML-based predictive models will transform processes like demand sensing, shaping, and orchestration, as well as supply planning. AI will begin to drive dynamic pricing, and new product introductions will be based on predictive market intelligence. AI and ML will also drive new models for product promotions management, as well as responses to disruptions in the supply chain. AI and ML predictions will play a key role in the future of supply chain operations and have a transformative effect on other business processes. Regulatory challenges and security risks With the continued risk of high-profile hacks that compromise the information of millions of consumers, companies will need to raise the standards of their privacy and protection protocols this year. New regulations to protect privacy that go into effect this year, such as General Data Protection Regulation (GDPR), will also affect company operations. Tax reform, Brexit, political instability, oil prices, and resource availability will all require action across the enterprise, including within the supply chain. As a result, supply chain planners will need sophisticated modeling capabilities to plan for all potential scenarios. Blockchain and beyond Blockchain has already transformed the way trading partner networks collaborate. As 2019 progresses, the technology will continue to remove banks from the picture, leverage cryptocurrency, and distributed ledgers, and enable better collaboration. Blockchain will also play a role in making collaboration a bigger factor in supply chain planning and execution. Track and trace, once a radio frequency identification (RFID)-focused movement, uses sensors and devices across assets and machines and will continue to be used in new ways this year. Thanks to the Internet of Things (IoT), data will permeate the supply chain and be used to transform processes once it’s analyzed and consumed by AI and ML. A dynamic, connected future Supply chain managers are always looking for new ways to take advantage of opportunities and to overcome obstacles as the modern supply chain evolves. With a connected supply chain planning approach and the use of new technologies, data is brought together, and more people are integrated into decision-making processes. As the supply chain of the future comes into view, these trends will play a key role in supply chain transformation. What is the Digital Supply Chain and how to be successfulThe digital supply chain is the next generation of supply chain management. Companies must recognize that “global digital supply chains” or “the digitalization of supply chains” aligns with the notion that the future of business is heavily rooted in a digital transformation revolution: the blockchain, the internet of things, advanced robotics, and much more. Here are five ways that progressive enterprises are leveraging blockchain for supply chain success.
What skills are needed for supply chain managementTo lead the way into a transformative future, they need to combine technical and business knowledge with collaboration and communication skills. The ability to influence department leaders that partner with supply chain is key, as well as the skills to interact intelligently with leaders across the organization is essential, because supply chain initiatives often reach across business units. And strong business acumen is a must-have—you’ll be more effective working with your counterparts in finance, sales, and marketing if you can speak their lingo. The effective supply chain leader of tomorrow is tech-savvy and comfortable working alongside the world of “machines.” When speaking of the potential conflict between man and machine, some have said that artificial intelligence won’t replace managers, but managers who work with AI will replace managers who don’t. This highlights the transformation taking place in supply chain: humanity is essential, but so is technology. It’s not a paradox; it’s the new normal. This leader is digitally dexterous, but also skilled with people. And this leader is a storyteller—digging into the countless layers of the supply chain to find the issues and weaving the right story together to help solve them. The many-faceted role of a supply chain leader is changing as we speak. To thrive in this new world, supply chain professionals should grow their capacities in collaboration, communication, and leadership, and pair those skills with in-depth technical knowledge to become a powerful force for the future of supply chain management software. Learn more about how Anaplan applies hyperscale computing across planning in supply, demand, and sales and operations.Learn more What is supply chain in manufacturing?In product manufacturing, the supply chain facilitates the transfer and transformation of raw materials into finished products. From there, the manufacturer transports and distributes the products to a retailer or directly to a consumer.
What is the term for supply chain?The terms supply chain management (SCM) and business logistics management—or simply, logistics—are often used interchangeably.
What is supply chain and distribution?Supply chain distribution is used to balance supply and demand. Supply chain distribution refers to your methodology for getting products to consumers. With a formal distribution plan that's implemented rigorously, you reduce cycle times for product deliveries.
What is a supply chain system?A supply chain is the network of individuals, companies, resources, activities, and technologies used to make and sell a product or service. A supply chain starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer.
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