In commerce, supply chain management (SCM) deals with a system of procurement, operations management, logistics and marketing channels, through which raw materials can be developed into finished products and delivered to their end customers. A more narrow definition of supply chain management is 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, synchronising supply with demand and measuring performance globally". This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the 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.
Logistics is the part of supply chain management that deals with the efficient forward and reverse flow of goods, services, and related information from the point of origin to the point of consumption according to the needs of customers. Logistics management is a component that holds the supply chain together. The resources managed in logistics may include tangible goods such as materials, equipment, and supplies, as well as food and other consumable items.
A supply chain, sometimes expressed as a "supply-chain", is a complex logistics system that consists of facilities that convert raw materials into finished products and distribute them to end consumers or end customers. Meanwhile, supply chain management deals with the flow of goods within the supply chain in the most efficient manner.
A value chain is a progression of activities that a business or firm performs in order to deliver goods and services of value to an end customer. The concept comes from the field of business management and was first described by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.
The idea of [Porter's Value Chain] is based on the process view of organizations, the idea of seeing a manufacturing organization as a system, made up of subsystems each with inputs, transformation processes and outputs. Inputs, transformation processes, and outputs involve the acquisition and consumption of resources – money, labour, materials, equipment, buildings, land, administration and management. How value chain activities are carried out determines costs and affects profits.
Procurement is the process of locating and agreeing to terms and purchasing goods, services, or other works from an external source, often with the use of a tendering or competitive bidding process. The term may also refer to a contractual obligation to "procure", i.e. to "ensure" that something is done. When a government agency buys goods or services through this practice, it is referred to as government procurement or public procurement.
Supplier relationship management (SRM) is the systematic, enterprise-wide assessment of suppliers' strengths, performance and capabilities with respect to overall business strategy, determination of what activities to engage in with different suppliers, and planning and execution of all interactions with suppliers, in a coordinated fashion across the relationship life cycle, to maximize the value realized through those interactions. The focus of supplier relationship management is the development of two-way, mutually beneficial relationships with strategic supply partners to deliver greater levels of innovation and competitive advantage than could be achieved by operating independently or through a traditional, transactional purchasing arrangement. Underpinning disciplines which support effective SRM include supplier information management, compliance, risk management and performance management.
DIFOT or OTIF is a measurement of logistics or delivery performance within a supply chain. Usually expressed as a percentage, it measures whether the supply chain was able to deliver:
Postponement is a business strategy employed in manufacturing and supply chain management which maximizes possible benefit and minimizes risk by delaying further investment into a product or service until the last possible moment, or where a manufacturer produces a generic product, which can be modified at a later stage before the final distribution to the customer. An example of such a strategy is Dell Computers' build-to-order online store. One of the earliest references to the concept was in a paper by Walter Zinn and Donald J. Bowersox in the Journal of Business Logistics in 1988, which highlighted five types: labelling, packaging, assembly, manufacturing and time postponements.
Infor Nexus is an independent business unit of Infor LLC offering a multienterprise supply chain network. The on-demand global supply chain management platform and integrated applications are used worldwide by businesses to manage global direct procurement, supplier networks, global logistics and global trade processes. Founded in 1998, in Oakland, California, it merged with TradeCard in 2013, and in September 2015, GT Nexus was acquired by Infor. Today, Infor Nexus is a business unit of Infor.
HP SPaM is an internal consulting group that supports HP businesses on mission-critical strategic and operation decisions. As evidenced by its publications and awards, SPaM has been a prominent example of the deployment and practice of OR/MS in large companies. Together with HP Labs, SPaM represents HP at the INFORMS Roundtable, a group of organizations whose purpose is to promote OR/MS excellence in practice.
The Sam M. Walton College of Business is the business school at the University of Arkansas, a public research university in Fayetteville, Arkansas. Created in 1926, the college is the second-largest college at the University of Arkansas, with over 5,000 undergraduate students as of Fall 2016. Walton College offers undergraduate, master's, and doctoral programs and is known nationally for its strong programs in retail, finance, information systems, and supply chain management. U.S. News & World Report consistently ranks Walton College among the top business schools in the country. The college has a close relationship with Walmart Stores, Inc., based in nearby Bentonville, Arkansas, and related vendor community.
Although logistics has been mostly utilized in commercial supply chains, it is also an important tool in disaster relief operations. Humanitarian logistics is a branch of logistics which specializes in organizing the delivery and warehousing of supplies during natural disasters or complex emergencies to the affected area and people. However, this definition focuses only on the physical flow of goods to final destinations, and in reality, humanitarian logistics is far more complicated and includes forecasting and optimizing resources, managing inventory, and exchanging information. Thus, a good broader definition of humanitarian logistics is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of goods and materials, as well as related information, from the point of origin to the point of consumption for the purpose of alleviating the suffering of vulnerable people.
Yossi Sheffi is the Elisha Gray II Professor of Engineering Systems at the Massachusetts Institute of Technology. He founded or co-founded five companies, has authored numerous scientific publications and nine books.
John Anthony Harvey is a British entrepreneur and logistician whose seminal contribution was to lead the intercontinental logistics service provider Tibbett & Britten Group plc during a 20-year period of diversification and growth. He is an Ambassador, and former Chairman of the Trustees, of Transaid Worldwide - the international transport charity. Since 2004 he has Chaired The Keswick Enterprises Group Limited, a UK-based private equity investor.
A Master of Science in Supply Chain Management is a type of postgraduate academic master's degree awarded by universities in many countries. This degree is typically studied for in Supply Chain Management and Logistics.
Nobel Energy is a group of companies concentrated in the energy industry providing integrated engineering, construction, procurement and supply chain management, and drilling services. Nobel Energy is a part of NEQSOL Holding, an international group of companies, acting in energy, telecommunications, high-technology, and construction industries in the UK, the USA, Turkey, Azerbaijan, Ukraine, Georgia, Kazakhstan, and the UAE.
Richard Wilding is a British academic and business professional specialising in logistics, transport and supply chain management. He is recognised as one of the world's leading experts in logistics and supply chain management.
Matthew Alan Waller is the ex-dean of the Sam M. Walton College of Business at the University of Arkansas. He currently holds the Sam M. Walton Leadership Chair.
The International Supply Chain Education Alliance (ISCEA) is a certifying body. Founded in 2003 and currently holding over 100,000 members, ISCEA has its World HQ office in Beachwood, OH, USA and regional offices in LATAM, EMEA and APAC. ISCEA is the governing body for the Ptak Prize.
Nada R. Sanders is an American university professor specializing in forecasting and supply-chain management. She is the Distinguished Professor of Supply Chain Management at the D’Amore-McKim School of Business at Northeastern University. She is also a research scholar, academic editor, reference book author, keynote speaker, business consultant, and corporate board member. Her forecasts describing the impact of the economic crisis on supply disruptions resulting from the COVID-19 pandemic received media coverage. Her latest book The Humachine, as well as her 2023 article published in HBR explore the influence of artificial intelligence over world business, culture and skills.
