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5 Functions of Supply Chain Management

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2017-11-08 3:18:18
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Supplier Diversity For Dummies
Book cover of Supplier Diversity for Dummies with business network graphic and author Kathey K. Porter details.
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Supplier Diversity For Dummies
Book cover of Supplier Diversity for Dummies with business network graphic and author Kathey K. Porter details.Explore Book
Buy NowSubscribe on Perlego
Supply chain management involves five main functions: aligning flows, integrating functions, coordinating processes, designing complex systems, and managing resources.
  • Aligning flows: As money, materials, and information are passed between customers and suppliers, supply chain management keeps them flowing up and down a supply chain.
  • Integrating functions: Supply chain management connects the activities of logistics, purchasing, and operations to ensure that they focus on goals that benefit overall performance.
  • Coordinating processes: Supply chain management increases profitability by aligning the processes used to plan, source, make, deliver, and (when necessary) return a company's products and services.
  • Designing complex systems: Simulation tools can predict how a supply chain will behave and show how small changes can cause major disruptions in the flow of materials.
  • Managing resources: Supply chain managers are responsible for using people, processes, and technology to meet the needs of customers.

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