basic_concepts_of_scm(supply_chain_management).pdfVIP

CHAPTER 1 Basic Concepts of Supply Chain Management After reading this chapter you will be able to ? Appreciate what a supply chain is and what it does ? Define the different organizations that participate in any supply chain ? Discuss ways to align your supply chain with your business strategy ? Start an intelligent conversation about the supply chain management issues in your company upply chains encompass the companies and the business activities Sneeded to design, make, deliver, and use a product or service. Businesses depend on their supply chains to provide them with what they need to survive and thrive. Every business fits into one or more supply chains and has a role to play in each of them. The pace of change and the uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participate in and to understand the roles that they play. Those companies that learn how to build and participate in strong supply chains will have a substantial competitive advantage in their markets. 1 E S S E N T I A L S o f S u p p l y C h a i n M a n a g e m e n t Nothing Entirely New. . . Just a Significant Evolution The practice of supply chain management is guided by some basic underlying concepts that have not changed much over the centuries. Several hundred years ago, Napoleon made the remark, “An army marches on its stomach.” Napoleon was a master strategist and a skillful general and this remark shows that he clearly understood the impor- tance of what we would now call an efficient supply chain. Unless the soldiers are fed, the army cannot move. Along these same lines, there is another saying that goes,“Amateurs talk strategy and professionals talk logistics.” People can discuss all sorts of grand strategies and dashing maneuvers but none of that will be pos- sible without first figuring out how