Define supply chain management. Identify and explain the five components of an effective supply chain management system. Why is it important for a sport retailer to have an effective supply chain management system?

Question

Quizplus · Accepted Answer

The Answer is Supply chain management is the combination of art and science that goes into improving the way your company finds the raw components it needs to make a product or service and deliver it to customers.
The following are five basic components of SCM.
Plan - This is the strategic portion of SCM.
Sourcing - Choose the suppliers that will deliver the goods and services you need to create your product.
Production - This is the manufacturing step.
Logistics - Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
Returns - The problem part of the supply chain.
Students will have various reasons for having an effective supply chain management system in sport retail, but they should include some of the following:
Before the Internet, the aspirations of supply chain software devotees were limited to improving their ability to predict demand from customers and make their own supply chains run more smoothly.
Now, companies can connect their supply chain with the supply chains of their suppliers and customers together in a single vast network that optimizes costs and opportunities for everyone involved.
Most companies share at least some data with their supply chain partners.
The payoff of timely and accurate supply chain information is the ability to make or ship only as much of a product as there is a market for (just-in-time manufacturing).

Define Supply Chain Management