Supply Chain Management

Introduction

SCM as defined by the Global Supply Chain Forum (GSCF), who is a group aiming at improving the work done on SCM, is “the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders” (Lambert and Cooper, 2000). The demand on supply chain has its roots in the current stand on global outsourcing and the open market; major and small sized corporations are heading east, and to the far-east in particular, building strong ties with suppliers to meet the demands of customers and guarantee a safe and fast delivery of products (Mentzer, DeWitt, and others, 2001).

Many elements line up to make the supply chain complete, planning being the strategic part of SCM that enables tracking the entire process. Choosing the appropriate supplier is a key factor in the success of the transactions, in addition to finding a manufacturer who can meet the quality standards of the business. Further more, companies must allocate the correct resource who can cover the logistic part of the work by guaranteeing proper delivery and return cycle to support customers with any problems they might have (Worthen, 2007).

Analysis
Implementing a supply chain within a company requires the successful understanding of the strategy required by the customers and the product predictive model of its functionality and supply demand certainty (Lee, 2002). M. Fisher explains the difference between functional products that have a long product life cycle and a stable market demand and between innovative products with short life cycle and uncertain or unpredictable demand (Fisher, 1997).
A supply chain for each category is fundamentally different because of the core actions provided by a supply chain, mainly, creating and transporting products and material, and ensuring that the product in the market is what the consumer wants (Fisher, 1997). Fisher elaborates further by directing companies that sell functional products such as food supplies and house hold items to focus on cutting cost and improving the price matrix, due to the fact that the demand on these items is very much guaranteed.