Basic principles of supply chain management

Basic principles of supply chain management

supply chain management principles

We have discussed some of the opportunities for cycle-time reduction that should be examined both within the organization and on an inter-organizational basis. There are a number of common characteristics identified with organizations that have successfully completed significant cycle-time reductions. The characteristics are given below:
Top management who are committed to support cycle-time reduction goals;
Use of cross-functional teams with thorough knowledge of process, information systems and technology; Application of training in cycle-time reduction approaches;
Establishing, monitoring, and reporting formal cycle-time performance measures using TQM tools (e.g., process mapping, pareto analysis, fishbone diagrams, etc.); and
Collaboration with supply chain members.

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Though it requires considerable effort to examine the entire supply chain management priciples , some areas have been identified earlier. However, in general, the specific supply chain activities that should be reviewed for cycle-time reduction are:
Materials planning and scheduling Manufacturing processes
Purchase order cycle Customer order processing
Inbound transportation Warehousing operations
Material receipt/inspection Outbound transportation
Material review activities Return materials/reverse logistics
Many of these areas are discussed in detail in the sections that follow. There are many possible approaches and there is no one right way to reduce supply chain process cycle times. However, supply chain organizations must use the specific tools and techniques depending upon the current state-of-affairs within the supply chain.
Very few organizations do not have significant opportunities for cycle-time improvement from a supply chain process perspective. The trend seen is that customers are increasingly focusing on time-based performance; therefore, supply chain member organizations must be able to meet this time-based challenge. This is a crucial aspect of supply chain management as future expectations indicate that the level of importance associated with time will only increase.