Supply Chain Management (SCM)

supply support and supply chain management

In general, ILS plans and directs the identification and development of logistics support and system requirements for military systems, with the goal of creating systems that last longer and require less support, thereby reducing costs and increasing return on investments.

ILS therefore addresses these aspects of supportability not only during acquisition, but also throughout the operational life cycle of the system. The impact of ILS is often measured in terms of metrics such as reliabilityavailabilitymaintainability and testability (RAMT), and sometimes System Safety (RAMS).

In commerce, supply chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.

Supply-chain management has been defined as the “design, planning, execution, control, and monitoring of supply-chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.” SCM practice draws heavily from the areas of industrial engineering, systems engineering, operations management, logistics, procurement, information technology, and marketing and strives for an integrated approach.[citation needed] Marketing channels play an important role in supply-chain management.

Current research in supply-chain management is concerned with topics related to sustainability and risk management, among others. Some suggest that the “people dimension” of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented on the research agenda.

Although it has the same goals as supply chain engineering, supply chain management is focused on a more traditional management and business based approach, whereas supply chain engineering is focused on a mathematical model based one.

Supply-chain management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. As organizations strive to focus on core competencies and become more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to other firms that can perform the activities better or more cost effectively.

The effect is to increase the number of organizations involved in satisfying customer demand, while reducing managerial control of daily logistics operations. Less control and more supply-chain partners lead to the creation of the concept of supply-chain management. The purpose of supply-chain management is to improve trust and collaboration among supply-chain partners thus improving inventory visibility and the velocity of inventory movement.[citation needed] in this section we have to communicate with all the vendors, suppliers and after that we have to take some comparisons after that we have to place the order.

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Ron Charest

Ron is a native New Yorker and 22 year Navy veteran. He retired from active duty in 1996 and went on to build a successful post-Navy career in logistics. Ron currently works for a major Government consulting firm based in Washington D.C., and together with his wife Weifang make their home in Northern Virginia.