SUPPLY CHAIN MANAGEMENT

Supply Chain Management (SCM)" is to share information and management resources to eliminate the waste of business processes as much as possible, as one business process beyond the walls of companies, organizations, and divisions aiming for total optimization.
Supply chain management synchronizes demand with a business unit as a whole by using materials/parts and resource capacity such as machines and workers and considering constraints (bottlenecks) to increase the flow from materials/parts supply to product selling, i.e. the cash flow speed called "throughput".

PROBLEM:-

It was identified that the major problems commonly faced by manufacturing firms were:
• Supply disruption risk acts as a logistical impediment;
• Inaccuracy and inconsistency of information breed inefficiency between SC entities;
• Uncertainty in supply and demand jeopardises the decision making capabilities of manufacturing firms; and Regulatory compliance stagnates the dynamism of the SC.

SOLUTION:-
The most crucial of the above mentioned solutions to the manufacturing industry for effective supply chain management is the embracement of new technologies, specifically e-manufacturing and instilling a risk management culture with senior management acting as catalysts.

PLANNING SUPPLY AND DEMAND * Forecasting and adapting to changes in demand and supply is applicable to the entire SC affecting upstream, manufacturing and downstream processes and arises from factors within and external to the organisation.

* Manufacturing firms are often departmentalised into ‘functional silos’ resulting in a lack of collaboration, information flows and accountability among internal functions which in turn distorts effective decision making. The result is material and product shortages, excessive on hand inventories, lack of labour utilisation and on-time