Supply Chain Management (SCM) encompasses the holistic planning and control of the logistics chain from procurement to the end customer. The goal is to continuously improve efficiency along the entire chain. This aims to increase customer benefit and optimize resource requirements. In addition to the flow of goods, SCM also considers the flow of information and finances.
Through well-managed SCM, companies can positively influence their logistics chain. They achieve faster delivery times, enable flexible supply, and save costs.
Supply Chain Management considers the entire process from manufacturing through distributors to the customer. Improved communication between all parties involved is intended to increase efficiency and ensure greater transparency along the supply chain: This makes processes more plannable, reduces supply bottlenecks, and avoids waste in the form of rejected goods. Unnecessary transport routes can also be saved.
Supply Chain Management: Prerequisites
- Collaboration: Stronger networking and cooperation of all participants along the logistics chain. This is necessary so that all partners have the necessary information and pursue a common goal to make the entire process efficient.
- Open information exchange: Transparent communication between all links in the logistics chain is essential. This promotes long-term planning and allows, for example, retailers and suppliers to better align their goals.
- Quick responsiveness: The ability to react quickly to changes in the logistics chain is crucial. Through better networking, actors respond rapidly to unexpected events or market changes, thus ensuring delivery capability.
- Short process times: Reducing processing times in administration and systems significantly contributes to efficiency. While production processes are often already optimized, the focus here is on improving administrative procedures.
- Powerful ERP system: An effective ERP system (ERP=Enterprise Resource Planning) supports the automation and optimization of standard processes. It helps with order processing and production planning.
- Holistic logistics: All aspects of the logistics chain, including material, information, and financial flow, must be integrated and viewed as a unit. This ensures that no links in the chain are neglected and the entire process runs smoothly.
- Clear rules: Unambiguous process guidelines and defined responsibilities are necessary to ensure the efficiency of the logistics chain. These guidelines help avoid errors and enable quick reactions in case of problems.
