Supply Chain and Logistics Managements' evolution

Résumé du document

Globally, supply chain management (SCM) is the whole set of tools and methods that are used by managers in order to improve the supply chain of a company. Indeed, supply chain management is regarded as a process in which planning, implementing and controlling, allow the companies to satisfy the customers' needs and requirements efficiently. In other words, it is "the management of activities that procure materials and services, transforming them into intermediate goods and final products, and delivering the products through a distribution system". In fact, supply chain management is one of the ten operations-management strategy decisions that can be used to gain productivity, improve production and ensure customer satisfaction. Further, logistics management is closely linked to supply chain management because it consists of an "approach that seeks efficiency of operations through the integration of all material acquisition, movement, and storage activities".

Extraits

[...] Moreover, there is now a very original tool available on the internet; a website where supply chain managers and logistics managers may come together to share information and experiences. It is a kind of association whose goal is to help supply chain managers collaborate and improve their effectiveness skills. This website is: www.cscmp.org . Founded in 1963, the site now has about 9,000 members. I think this is a good idea to try to gather supply chain managers from all over the world to share values and management methods. [...]

[...] Increasingly regarded as an instrument of competitiveness, the managers of many companies are now focusing on their production costs by creating new logistics processes. Since the 1960's, the use of audit and management advisers has considerably accelerated. As one of the most important part of the logistics, delivering products (goods or services) is the way to reduce costs for most of the companies. Thus, logistics managers must look at each solution, organizing the supply chain in the best manner, because the links between all the elements are crucial. Planning is part of the logistics managers' job. [...]

[...] This is why the logistics must be understood and analyzed well by managers. These managers need to find all the viable solutions to reduce costs and improve all the production processes. A company's survival on a market is possible only if there are people who are able to make things happen efficiently. These people are the supply chain and logistics managers. Bibliography Books - Operations Management, 8th Edition, Jay Heizer & Barry Render - Basics of supply-chain management, Lawrence D. [...]

[...] It is certainly one the main reasons why logistics is so preponderant in the current competitive world. Many options can be studied by companies. Indeed, in order to fulfill customers' needs, some companies choose to have a large amount of stock. However this is not a good option, because it creates many high costs. To avoid this kind of useless costs, logistics is really a good tool. In effect, its role is to coordinate appropriately the demands and offers, in order to have no extra costs. [...]

[...] What is important for the logistics managers is to consider the global company's economic objective. They play an important role in the realization of the mission of the company because if they are not in concordance with it, the supply chain will not be as efficient as intended. For instance, if the company's strategy is to dominate its competitors by the way of low costs, the aim of the logistics managers is to reduce costs by obtaining bargains from the suppliers, improving productivity, and gaining precious time. [...]