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Components of Supply Chain Management
Today, it is the basic requirement amongst customers that businesses produce defect-free products to the customer faster and be more consistent in the quality. This has necessitated that the players of supplier- manufacturer-distributors to co-ordinate amongst themselves. This relationship is further accentuated in a globalised environment where the various players are situated across different parts of the world. The changing technological trends and the economic downturns too have vastly contributed to market uncertainty - products have to be produced in the best possible way. This uncertainty requires flexibility among the channel participants and has thus made Supply chain management important for the business community.
Let us now understand the players of a Supply chain. Supply chain consists of an organisation, a supplier and customer, all linked together by an integrated process where there is flow of inventory goods from the raw source (supplier) to final delivery (customer). For the optimum system performance each part of supply chain has to be linked in a synchronised manner.
According to Mentzer (2001) "SCM is the process of managing relationships, information and materials flow across enterprise borders to deliver enhanced customer service and economic value". According to him, SCM can also be viewed as a system process with clearly identified inputs, outputs and a structure for action.
Let us now understand the different parts of the Supply chain management:
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