Sunday, May 14, 2006

What does supply chain management address?

Supply chain management must address the following problems:

* Distribution Network Configuration: number and location of suppliers, production facilities, distribution centers, warehouses, and customers

* Distribution Strategy: centralized versus descentralized, direct shipment, cross docking, pull or push strategies, third party logistics

* Information: integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory, and transportation

* Inventory Management: quantity and location of inventory including raw materials, work-in-process, and finished goods

SCOR is an operations reference model for supply chain promoted by the Supply-Chain Council.

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