Understand the relationship between supply chain management (SCM) and organizational business object

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SUPPLY CHAIN MANAGEMENT: 
Supply chain management (SCM) is the process of planning, implementing and controlling 
the operations of the supply chain as efficiently as possible. Supply Chain Management spans 
all movement and storage of raw materials, work-in-process inventory, and finished goods 
from point-of-origin to point-of-consumption. 
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. 
More recently, the loosely coupled, self-organizing network of businesses that cooperates to 
provide product and service offerings has been called the Extended Enterprise. 
 
Some experts distinguish Supply Chain Management and logistics, while others consider the 
terms to be interchangeable. Supply Chain Management can also refer to Supply chain 
management  software  which  are  tools  or  modules  used  in  executing  supply  chain 
transactions, managing supplier relationships and controlling associated business processes. 
Supply chain  event management (abbreviated as SCEM)  is a consideration of all possible 
occurring  events  and  factors  that  can  cause  a  disruption  in  a  supply  chain.  With  SCEM 
possible scenarios can be created and solutions can be planned. 
A supply chain is a network of facilities and distribution options that performs the functions 
of procurement of materials, transformation of these materials into intermediate and finished 
products, and the distribution of these finished products to customers. Supply chains exist in 
both service and manufacturing organizations, although the complexity of the chain may vary 
greatly from industry to industry and firm to firm. 
Supply chain management is typically viewed to lie between fully vertically integrated firms, 
where  the  entire  material  flow  is  owned  by  a  single  firm,  and  those  where  each  channel 
member operates independently. Therefore coordination between the various players in the 
chain  is  key  in  its  effective  management.  Cooper  and  Ellram  compare  supply  chain 
management  to  a  well-balanced  and  well-practiced  relay  team.  Such  a  team  is  more 
competitive when each player knows how to be positioned for the hand-off. The relationships 

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are the strongest between players who directly pass the baton, but the entire team needs to 
make a coordinated effort to win the race. 
 
SUPPLY CHAIN MANAGEMENT PROBLEM: 
Supply chain management must address the following problems: 
1.  Distribution  Network  Configuration:  Number,  location  and  network  missions  of 
suppliers,  production  facilities,  distribution  centers,  warehouses,  cross-docks  and 
customers. 
2.  Distribution  Strategy:  Including  questions  of  operating  control  (centralized, 
decentralized or shared); delivery scheme (e.g., direct shipment, pool point shipping, 
Cross  docking,  DSD  (direct  store  delivery),  closed  loop  shipping);  mode  of 
transportation  (e.g.,  motor  carrier,  including  truckload,  LTL,  parcel;  railroad; 
intermodal, including TOFC and  COFC; ocean freight; airfreight); replenishment 
strategy (e.g., pull, push or hybrid); and transportation control (e.g., owner-operated, 
private carrier, common carrier, contract carrier, or 3PL). 
3.  Information:  Integration  of  and  other  processes  through  the  supply  chain  to  share 
valuable information, including demand signals, forecasts, inventory, transportation, 
and potential collaboration etc. 
4.  Inventory Management: Quantity and location of inventory including raw materials, 
work-in-process and finished goods. 
5.  Cash-Flow: Arranging the payment terms and the  methodologies for  exchanging 
funds across entities within the supply chain. 
Supply  chain  execution  is  managing  and  coordinating  the  movement  of  materials, 
information and funds across the supply chain. The flow is bi-directional. 
 
ACTIVITIES/FUNCTIONS: 
Supply chain management is a cross-functional approach to managing the movement of raw 
materials  into  an  organization,  certain aspects  of  the  internal  processing  of  materials  into 
finished goods, and then the movement of finished goods out of the organization toward the 
end-consumer. As organizations strive to  focus on core competencies and becoming more 

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SUPPLY CHAIN MANAGEMENT: Supply chain management (SCM) is the process of planning, implementing and controlling the operations of the supply chain as efficiently as possible. Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point-of-origin to point-of-consumption. 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. More recently, the loosely coupled, self-organizing network of businesses that cooperates to provide product and service offerings has been called the Extended Enterprise. Some experts distinguish Supply Chain Management and logistics, while others consider the terms to be interchangeable. Supply Chain Management can also refer to Supply chain management software which are tools or modules used in executing supply chain transactions, managing supplier relationships and controlling associated business processes. Supply chain event management (abbreviated as SCEM) is a consideration of all possible occurring events and factors that can cause a disruption in a supply chain. With SCEM possible scenarios can ...
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