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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 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 in distribution channels within the supply chain in the most efficient manner.
A raw material, also known as a feedstock, unprocessed material, or primary commodity, is a basic material that is used to produce goods, finished goods, energy, or intermediate materials that are feedstock for future finished products. As feedstock, the term connotes these materials are bottleneck assets and are required to produce other products.
The U.S. Commission on National Security/21st Century (USCNS/21), also known as the Hart-Rudman Commission or Hart-Rudman Task Force on Homeland Security, was chartered by Secretary of Defense William Cohen in 1998 to provide a comprehensive review of US national security requirements in the 21st century. USCNS/21 was tasked "to analyze the emerging international security environment; to develop a US national security strategy appropriate to that environment; and to assess the various security institutions for their current relevance to the effective and efficient implementation of that strategy, and to recommend adjustments as necessary".
Purchasing is the procurement process a business or organization uses to acquire goods or services to accomplish its goals. Although there are several organizations that attempt to set standards in the purchasing process, processes can vary greatly between organizations.
Commercial-off-the-shelf or commercially available off-the-shelf (COTS) products are packaged or canned (ready-made) hardware or software, which are adapted aftermarket to the needs of the purchasing organization, rather than the commissioning of custom-made, or bespoke, solutions. A related term, Mil-COTS, refers to COTS products for use by the U.S. military.
A supply network is a pattern of temporal and spatial processes carried out at facility nodes and over distribution links, which adds value for customers through the manufacturing and delivery of products. It comprises the general state of business affairs in which all kinds of material are transformed and moved between various points to maximize the value added for customers. In the semiconductor industry, for example, work-in-process moves from fabrication to assembly, and then to the test house.
In the U.S., critical infrastructure protection (CIP) is a concept that relates to the preparedness and response to serious incidents that involve the critical infrastructure of a region or the nation. The American Presidential directive PDD-63 of May 1998 set up a national program of "Critical Infrastructure Protection". In 2014 the NIST Cybersecurity Framework was published after further presidential directives.
The Defense Production Act (DPA) of 1950 is a United States federal law enacted on September 8, 1950, in response to the start of the Korean War. It was part of a broad civil defense and war mobilization effort in the context of the Cold War. Its implementing regulations, the Defense Priorities and Allocation System (DPAS), are located at 15 CFR §§700 to 700.93. Since 1950, the Act has been reauthorized over 50 times. It has been periodically amended and remains in force.
Infrastructure security is the security provided to protect infrastructure, especially critical infrastructure, such as airports, highways rail transport, hospitals, bridges, transport hubs, network communications, media, the electricity grid, dams, power plants, seaports, oil refineries, liquefied natural gas terminals and water systems. Infrastructure security seeks to limit vulnerability of these structures and systems to sabotage, terrorism, and contamination.
Energy security is the association between national security and the availability of natural resources for energy consumption. Access to cheaper energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. International energy relations have contributed to the globalization of the world leading to energy security and energy vulnerability at the same time.
Intelligence cycle management refers to the overall activity of guiding the intelligence cycle, which is a set of processes used to provide decision-useful information (intelligence) to leaders. The cycle consists of several processes, including planning and direction, collection, processing and exploitation, analysis and production, and dissemination and integration. The related field of counterintelligence is tasked with impeding the intelligence efforts of others. Intelligence organizations are not infallible but, when properly managed and tasked, can be among the most valuable tools of management and government.
DOTMLPF is an acronym for doctrine, organization, training, materiel, leadership and education, personnel, and facilities. It is used by the United States Department of Defense and was defined in the Joint Capabilities Integration Development System, or JCIDS Process as the framework to design what administrative changes and/or acquisition efforts would fill a capability need required to accomplish a mission. Because combatant commanders define requirements in consultation with the Office of the Secretary of Defense (OSD), they are able to consider gaps in the context of strategic direction for the total US military force and influence the direction of requirements earlier in the acquisition process, in particular, materiel.
Material criticality is the determination of which materials that flow through an industry or economy are most important to the production process. It is a sub-category within the field of material flow analysis (MFA), which is a method to quantitatively analyze the flows of materials used for industrial production in an industry or economy. MFA is a useful tool to assess what impacts materials used in the industrial process have and how efficiently a given process uses them.
Since 2011 the European Commission has assessed every 3 years a list of Critical Raw Materials (CRMs) for the EU economy within its Raw Materials Initiative. To date, 14 CRMs were identified in 2011, 20 in 2014, 27 in 2017 and 30 in 2020. These materials are mainly used in energy transition and digital technologies. Then in March 2023 Commission President Ursula von der Leyen proposed the Critical Raw Materials Act, "for a regulation of the European Parliament and of the European Council establishing a framework for ensuring a secure and sustainable supply of critical raw materials". At the time, Europe depended on China for 98% of its rare-earth needs, 97% of its lithium supply and 93% of its magnesium supply.
Sustainable Materials Management is a systemic approach to using and reusing materials more productively over their entire lifecycles. It represents a change in how a society thinks about the use of natural resources and environmental protection. By looking at a product's entire lifecycle new opportunities can be found to reduce environmental impacts, conserve resources, and reduce costs.
Strategic and Critical Materials Stock Piling Act of 1939, 50 USC § 98, is a United States federal law establishing strategic materials supply reserves for the United States common defense, industrial demands, and military commitments. The Act of Congress authorize the acquisition of raw material stocks for inventory disposition, rotation, and storage within the United States.
Friendshoring or allyshoring is the act of manufacturing and sourcing from countries that are geopolitical allies, such as members of the same trade bloc or military alliance. Some companies and governments pursue friendshoring as a way to continue accessing international markets and supply chains while reducing certain geopolitical risks. Friendshoring can have downsides, including more expensive manufacturing and reduced economic output.
Supply chain diplomacy is a form of diplomacy and statecraft that sets out to use diplomatic means, such as negotiation and international collaboration, to manage and improve the flow of goods and services through international supply chains for the collective benefit of nation states. This can include efforts to address issues such as trade barriers, intellectual property rights, and logistics and transportation challenges that impede a nation's access to supply.
References
- ↑ United States, Office of Technology Assessment, Congress. Strategic materials: technologies to reduce U.S. import vulnerability. DIANE Publishing. p. 5. ISBN 9781428923515.
{{cite book}}: CS1 maint: multiple names: authors list (link) - ↑ "Defense Logistics Agency - Home Page". strategicmaterials.dla.mil. Retrieved 14 January 2014.
- ↑ "Strategic and Critical Materials 2013 Report on Stockpile Requirements" (PDF). U.S. Department of Defense. Retrieved 14 January 2014.
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