Philosophy of Supply Chain Management

supply chain management principles

Supply Chain Management (SCM) refers to the coordination and management of all activities involved in sourcing, procurement, conversion, and logistics. The goal is to deliver the right product, at the right time, in the right quantity, at the lowest possible cost. Understanding and applying the key principles of SCM helps businesses improve efficiency, reduce waste, and enhance customer satisfaction.

Customer Focus in Supply Chain Management

This principle emphasizes understanding customer needs and aligning supply chain operations to meet those expectations. A supply chain that responds quickly and efficiently to changes in customer demand ensures higher satisfaction and loyalty. Strategies include offering customizable products, improving delivery speed, and providing excellent after-sales service.

Integration Across the Supply Chain

Integration involves the seamless flow of information and coordination among all stakeholders—suppliers, manufacturers, warehouses, distributors, and retailers. A well-integrated supply chain shares real-time data, forecasts, and production schedules, which helps minimize delays and avoid overstocking or stockouts.

Measuring Performance

Establishing clear Key Performance Indicators (KPIs) like delivery time, order accuracy, and inventory turnover helps organizations track their supply chain performance. Regular assessment ensures goals are met and provides insights for strategic improvements.

Analyse the connection between Supply Chain Management and Demand, Acquisitions, Distribution, and Logistics.

Analyse the connection between Supply Chain Management and Demand, Acquisitions, Distribution, and Logistics. They’ll be proficient in mapping the supply chain, highlighting the advantages of implementing this approach, and pinpointing areas necessitating enhancements within the supply chain system.

Course Content
  • The definition of supply chain management is analysed in order to demonstrate an understanding of the challenges facing organisations when they attempt to implement a supply chain 
  • The evolution of the concept of supply chain management is analysed to inform recommendations on a possible change process that would benefit organisations
  • The concepts of demand, acquisition, distribution and disposal are analysed
  • The logistics function is analysed in order to demonstrate an understanding of change processes facing organisations 
  • Supply chain management is evaluated to determine its impact on organisational objectives
  • The strategic, tactical and operational issues in supply chain management are identified to describe the relationship of each to the philosophy 
  • The importance of information exchange across the supply chain is discussed to highlight its impact on reaching strategic business imperatives 
  •  Key steps are outlined to determine potential challenges in creating an effective supply chain
  • The purchasing function in organisations is analysed to reflect its importance for the supply chain
  • A value analysis is conducted to provide guidelines for ethical behaviour in purchasing 
  • Supplier partnerships are examined to reflect how they are advantageous to an organisation
  • A map of a supply chain is produced to indicate its location within a specific organisation
  • Relationships between the various processes in the supply chain are evaluated in order to reflect ways of applying the supply chain philosophy
 

Improvements are measured against their benefits and possible drawbacks to the supply chain

  • The typical challenges facing each of the supply chain processes are examined to determine improvement requirements
  • Possible ways in which the process challenges can be addressed are identified through the application of the supply chain philosophy
  • The application of a supply chain management philosophy is assessed to determine how it contributes to addressing specific challenges faced by demand, acquisition, distribution and disposal
  • Non-accredited: Short course only  
  • Duration: 1h 30m
  • Delivery: Classroom/Online/Blended
  • Access Period: 12 Months 
Print Button
Scroll to Top