Introduction to Logistics & Supply Chain Management

When was the last time that you just created a procurement at McDonald’s? you'll haven't place a lot of thought on wherever all of the ingredients came from that created your sandwich. reckoning on the restaurant’s location, McDonald’s sources its ingredients from each native and world suppliers. The challenge is to make sure that each one restaurants within the McDonald’s network have enough ingredients to fulfill client demand. this can be the challenge for provision & provide Chain Management. Here could be a list of relavent topics that provision / provide Chain Management operations cover.

History of provision & Chain Management:

Logistics has continuously been a essential half collectively of the four P’s in Marketing: Product, Place, value and Promotion. The “Place” element ensures the merchandise is at the proper place, at the proper time, within the right amount and therefore the right quality. examine however the provision discipline started and wherever it's headed.

Logistics & Chain Management Defined:

According to the Council of provide Chain Management Professionals (CSCMP), an expert organization for provision and SCM professionals, provision is outlined as:
“the method of designing, implementing and dominant the economical, effective flow and storage of products, services and connected data from purpose of origin to purpose of consumption for the aim of orthodox to client requirements”

Creating a provision Strategy:

It is a misconception to assume that the simplest provision strategy is to urge the merchandise from the provider to the client the quickest and continuously be available for all organizations. If this were true, most organizations wouldn't be profitable nowadays. the reality is, making a provision strategy could be a leveling act that takes several variables under consideration. Here could be a list of what has to be answered before making a provision strategy.

Inventory Management:

Managing inventory within the provide chain is essential to make sure high client service levels. However, it's conjointly a awfully expensive quality to keep up. Having the proper quantity of inventory to fulfill client needs is essential. establish what inventory best practices scale back inventory prices across the availability chain.
Purchasing Practices:
In a typical organization, eightieth of the buying transactions represent close to 2 hundredth of the overall bucks spent. several organizations pay an equivalent quantity of cash to method a $1,000 dealing as a $10,000 dealing. Here ar four methodologies that will be deployed to scale back little price purchase dealing prices that involve consolidation and automation. establish that approach can work best for you.

Risk Management in provide Chain Operations:

As outsourcing of provision / SCM operations become additional common for companies, the management of risk can gain additional importance. Variables like unsteady exchange rates, provide disruptions as a result of labor strikes and provider bankruptcy could cause disturbance on the availability chain. Implementing a solid risk management strategy can facilitate scale back uncertainties.