Supply Chain Administration – an Introduction

The precept of ‘Survival of the fittest’ remains valid within the current international economic system characterized by the presence of ever changing enterprise environment. Every fashionable firm must battle for the existence & development under such a competitive environment. One surest way to achieve this is to offer best quality of product at reasonable rate, which suits well to the necessities of goal customer. To impart a sense of delight within the minds of customers and provide quality product at reasonable price producer has to deliver shift in his emphasis from mere cost ascertainment to price reduction to reduce cost of production. Thus, price reduction is the main managerial mantra as once quoted by well-known strategist Michael.E.Porter in his landmark book “Competitive Strategy”. There are number of strategic value administration methods available like Supply Chain Administration (SCM) , Enterprise Process Re-engineering (Worth Re-engineering), Total Productive Upkeep to reduce cost. Of these Supply Chain Administration is prominent instrument to reduce cost. In this backdrop the current paper aims to highlight the conceptual framework of SCM, Modus Operandi and its relevance for corporate world in the new millennium.

Supply Chain Administration has change into a very powerful technique as it increases the responsiveness to the changing business conditions and enhances the competitiveness of the organization. In as we speak’s intense competition, and more and more international financial system, to survive and develop, group should improve their market responsiveness and grow to be cost competitive. The supply Chain framework is a method of breaking down the linked set of value creating activities from basic raw material/element supplier to the availability of the tip product to buyer/consumer.

A provide chain is a business process that links producers, retailers, clients and suppliers in the type of a chain to, develop and deliver products as a single virtual group of pooled expertise and resources. Supply chain administration is process of synchronizing the flow of physical items and associated info from the production line of low level part suppliers to the top shopper, ensuing in the provision of early notice of demand fluctuations and synchronization of business processes amongst all the co-operating organizations in this supply chain.


Definitions from well-revered references have diverse through the previous decade. For instance, Supply Chain Yearbook 2000 described SCM as, “A series of processes that facilitates enterprise activities between trading partners, from the purchase of raw goods and materials for manufacturing to delivery of a finished product to an finish user.” APICS-The Performance Advantage, offered this definition in January 1999: “The global network used to deliver products and providers from raw materials to end customers by means of an engineered stream of knowledge, physical distribution and cash.”

This is a little change from the 1997 definition, Logistics Administration offered, describing SCM as, “The delivery of enhanced customer and financial worth by way of synchronized administration of the circulate of physical items and associated information from sourcing to consumption.” The definition evolution continues as European Logistics Association, in 1995 steered SCM was, “The group, planning, control and execution of the goods movement from development and purchasing by means of production and distribution to the final buyer to be able to satisfy the necessities of the market at minimal cost and minimum capital use.”

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2 Thoughts on “Supply Chain Administration – an Introduction

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