Article Dated: 03 March 2007
The Concept of Supply Chain in India is a new concept if not unofficially at least officially.
What is supply chain all about and why is it so important in today’s global business activities. Supply Chain refers to the distribution channel of a product, from its sourcing, to its delivery to the end consumer (also known as the value chain). The supply chain is typically comprised of multiple companies who are increasingly coordinating activities via an extranet.
According to Wikipedia the channelization of supply chain is done through supply chain management. The Wikipedia defines “Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of the Supply chain with the purpose to satisfy customer requirements as efficiently as possible. Supply chain management spans all movement and storage of raw material , work-in-process inventory, and finished goods from point-of-origin to point-of-consumption.”
The term supply chain management was first coined by consultant Keith Oliver, of strategy consulting firm Booz Allen Hamilton in 1982. The Booz Allen Hamilton puts forward , “Supply Chain Management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies”
Author: Dr Suvrokamal Dutta. The writer is a renowned Foreign Affairs and Economic Expert.