The supply chain management

Emblem of the 635th Supply Chain Management Wing

The management of the supply chain is a process of strategically manage different flows (goods, services, finance, information) as well as relationships between companies in order to achieve and / or supporting the organizational goals

The supply chain management is a set of methods that are used to provide better integration and better management of all network parameters: transportation, inventory, costs, etc.. These parameters are present in the suppliers in their own company and ultimately the clients. The proper management of the network allows an optimized production to offer the end customer the right product in right quantity. The goal is to obviously reduce costs along the chain, taking into account the requirements of the client – after all, this is quality: deliver what the customer wants, the price and conditions that they expect.

This management is sometimes difficult, especially for a system that has no control over the entire chain. For example, a company that outsources a portion of the production or logistics , no longer has control over an important part of the process. It is difficult also because the demand of the customer is mostly unknown and varies substantially from one month to another, which implies a more complex production planning. The products to be manufactured may also change (new season, fashion, models, improvements), which put in evidence the need for a pricing strategy and accounting of supplies and inventory.

The supply chain management

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