Supply chain management

Supply chain management stands for supply chain management and in recent years has become the epitome of customer-oriented, consistent and efficient design of logistics chains in order to ensure efficient consumer response. A multitude of operations have to be carried out from the end customer to the final assembly, the pre-assembly, the parts production up to the material production and primary production. These can all be seen as links in a continuous logistical chain. Each of the chain links takes on the following five identical functions: planning, procuring, manufacturing, delivering and, if necessary, returning (e.g. in the event of quality problems).

The Supply Chain Council (SCC), an independent, not-for-profit American company, has developed this so-called Supply Chain Operations Reference Model (SCOR). Almost 1,000 companies and scientific institutions are currently involved in the SCC. The aim of the organization is to further develop the model and to determine a cross-industry standard for supply chain management.

The following figure shows the relationship and makes it clear that every link in the chain, apart from the end customer and the original production, is a supplier and buyer at the same time. The special thing about supply chain management is the inclusion not only of your own company, but also of the customers and suppliers of the upstream and downstream production stages.

In addition, in supply chain management it is important to organize the material flow systems according to the flow principle and to design the associated information and cash flow systems efficiently and meaningfully, so that continuous transparency of the material and parts availability in the entire logistics chain system as well as efficient tracking of the payment flows is guaranteed are.

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