The precept of ‘Survival of the fittest’ remains legitimate in the present world economic system characterised by the presence of ever changing enterprise environment. Every fashionable firm must battle for the existence & growth under such a competitive environment. One surest way to achieve this is to supply finest quality of product at reasonable rate, which suits well to the requirements of goal customer. To impart a feeling of delight in the minds of shoppers and provide quality product at reasonable price producer has to convey shift in his emphasis from mere cost ascertainment to cost reduction to reduce cost of production. Thus, price reduction is the main managerial mantra as as soon as 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 Management (SCM) , Enterprise Process Re-engineering (Value Re-engineering), Total Productive Upkeep to reduce cost. Of those Supply Chain Management is prominent tool 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 grow to be a really powerful method as it will increase the responsiveness to the changing enterprise conditions and enhances the competitiveness of the organization. In today’s intense competition, and increasingly global economic system, to outlive and develop, group must enhance their market responsiveness and grow to be value competitive. The supply Chain framework is a method of breaking down the linked set of value creating activities from primary raw material/element provider to the supply of the top product to buyer/consumer.
A supply chain is a enterprise process that links producers, retailers, prospects and suppliers in the form of a chain to, develop and deliver products as a single virtual organization of pooled skills and resources. Supply chain administration is process of synchronizing the move of physical goods and related information from the production line of low level element suppliers to the end client, ensuing within the provision of early notice of demand fluctuations and synchronization of enterprise processes amongst all the co-working organizations in this supply chain.
Definitions from well-respected references have various through the past decade. For example, Supply Chain Yearbook 2000 described SCM as, “A chain of processes that facilitates enterprise activities between trading partners, from the acquisition 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 worldwide network used to deliver products and services from raw supplies to end prospects by means of an engineered move of information, physical distribution and cash.”
This is a little change from the 1997 definition, Logistics Management offered, describing SCM as, “The delivery of enhanced buyer and economic worth by means of synchronized administration of the movement of physical goods and related data from sourcing to consumption.” The definition evolution continues as European Logistics Affiliation, in 1995 suggested SCM was, “The organization, planning, control and execution of the goods move from development and purchasing by production and distribution to the ultimate buyer in order to satisfy the necessities of the market at minimum value and minimum capital use.”
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