Supply Chain Management is an "umbrella process" in which the product is created and delivered to consumers from the structural angle. A supply chain (supply chain) refers to a complex network of relationships that sustain the organization with his business partner to obtain the source of production in conveying to the consumer. (Kalakota, 2000)
Goals to be reached from every supply chain is to maximize the value generated as a whole (Chopra, 2001). Integrated supply chain will increase the overall value generated by the supply chain.
Supply Chain Management is the coordination of materials, information and financial flows between participating firms. Supply chain management can also mean all kinds of basic commodities to finished product sales to consumers to recycle products that have been used.
* Flow of material involving the physical product flows from suppliers to consumers through a chain, as well as reverse flow of product returns, service, recycling and disposal. * Flow information includes the forecast demand, transmission of orders and order status reports, is running a two-way flows between end consumers and providers of raw materials. * Financial Flows include credit card information, credit terms, payment schedule in determining kepemilikandan delivery. (Kalakota, 2000)
According to Turban, Rainer, Porter (2004), there are 3 kinds of supply chain components, namely:
* Upstream Supply Chain / Upstream supply chain
Part upstream (upstream) supply chain covers the activities of a manufacturing company with the distribution (which can manufacture, assembly, or both) and their connection to their dealer (the dealer a second-Trier). Relations suppliers can be expanded to several strata, all the way from the origin of material (eg ore, plant growth). In the upstream supply chain, the main activity is the procurement.
* Internal Management Supply Chain / Internal supply chain management
Part of the internal supply chain encompasses all the goods to a warehouse entry process used in transforming inputs from suppliers into the organization's output. This extends from the time of entry into the organization. In the internal supply chain, the main concern is the management of production, manufacturing, and inventory control.
* Segment Downstream Supply Chain / Downstream supply chain segment
Downstream (estuary), supply chain includes all activities involving the delivery of products to end customers. In the downstream supply chain, attention is directed to the distribution, warehousing, transportation, and after-sales-service.
Supply chain management must include the following problems:
* Distribution Network Configuration: Number and location of suppliers, production facilities, distribution centers (distribution center / DC), warehouses and customers. * Distribution Strategy: Centralized versus decentralized, direct shipment, Cross docking, pull or push strategies, third party logistics. * Information: Integrate systems and processes through the supply chain to share valuable information, including demand signals, forecasts, inventory and transportation etc.. * Inventory Management: Quantity and location of inventory including raw materials, work processes, and finished goods. * Flow of funds: Set payment terms and methods to exchange money through an entity within the supply chain.
Supply chain execution is managing and coordinating the movement of materials, information and funds across the supply chain. Own two-way plot.
Activities and Functions Supply chain management is inter-functional approach (cross functional) to regulate the movement of raw materials into an organization and movement of finished goods out of the organization toward the end consumer. As corporations focus more on core competencies and more flexible, they must reduce their ownership of raw material sources and distribution channels. This function is increased to lack of resources to other companies involved in satisfying consumer demand, while reducing management control of daily logistics. Fewer controls and supply chain partners toward the creation of supply chain concepts. The objective of supply chain management is to improve the [trust and collaboration among supply chain partners, and increasing inventory in clarity and improve the acceleration of inventory.
Broadly speaking, these management functions can be divided into three, namely distribution, networking and capacity planning, and supply chain development.
some models have been proposed to understand the activities required to manage the movement of materials on organizational and functional boundaries. SCOR is a supply chain management model promoted by the Council of Supply Chain Management. Another is the SCM Model proposed by the Global Supply Chain Forum (GSCF). Supply chain activities can be grouped into strategic level, tactical, and operational.
Strategic * Strategic network optimization, including the number, location, and size of warehouses, distribution centers and facilities * Strategic Partner with a supplier of supply, distributors, and customers, creating communication channels for critical information and operational improvements such as cross docking, direct shipping and logistics third-person * Products Design that coordinated, so there is a new product that could be integrated optimally into the supply chain, load management * The decision where to make and what you make or buy * Connecting the overall organizational strategy with supply strategy / supply
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| Suppy Chain Management General Structure |
Operational * Daily production and distribution planning, including all of the supply chain * Production planning for each facility manufaktru in the supply chain (minute by minute) * Planning and forecasting demand, coordinating the demand forecast of all customers and share predictions with all suppliers * Planning of procurement, including current inventory and forecast demand, in collaboration with all suppliers * Inbound operations, including transportation from suppliers and inventory received * Operation of production, including material consumption and flow of finished goods (finished goods) * Outbound operations, including all fulfillment activities and transportation to customer * Assurance commands, counting to all matters relating to the supply chain, including all suppliers, manufacturing facilities, distribution centers, and other customers.
Material and Information Flow The purpose of the supply chain is to ensure that the material continues to flow from source to final consumer. The parts (parts) that move within the supply chain should be running as fast as possible. And with the aim of preventing a buildup of inventory at the local, these flows should be managed in such a way as to make the parts move in an irregular coordination. The term is often used is synchronous. (Knill, 1992)
the goal is always to continue, synchronous flow. Continuing means no interruptions, no ball falling, no accumulation is not required. And synchronous means everything works like a ballet. The parts and components delivered on time, in sequences that should be, exact to the point that they need
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Sometimes very difficult to see the nature of the current "end to end" in existing supply chain. The negative effects of these difficulties include the accumulation of inventories and the response was not frivolous at the end customer. Thus, management strategies require a holistic review of the supply relationship.
Information technology enables rapid sharing of data demand and supply. By sharing information throughout the supply chain to the end users, we can create a demand chain, aimed at providing more customer value. The goal ialha integrate demand and supply data so that akuarasinya already meningkatdapat picture was taken about the nature of the business process, market and end consumers. This integration itself allows an increase competitive advantage. So with the existence of this integration in the supply chain will increase the dependency and minimum inventory.
