The Supply Chain Management Processes

Supply chain management is the management of relationships in the network of organizations, from end customers through original suppliers, using key cross-functional business processes to create value for customers and other stakeholders.

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Click below for any process in the figure above for a short description of the activities included in the process.

Customer relationship management
Supplier relationship management
Customer service management
Demand management
The order fulfillment
Manufacturing flow management
Product development and commercialization
Returns management

Successful supply chain management requires implementing cross-functional processes within the company and integrating them with key members of the supply chain. Valuable resources are wasted when supply chains are not integrated, appropriately streamlined, and managed. The value of having standard business processes in place is that managers from different organizations in the supply chain can use a common language and can link-up their firms’ processes with other members of the supply chain, as appropriate.

The framework described in this book is built on eight key business processes that are both cross-functional and cross-firm in nature. Each process is managed by a cross-functional team, including representatives from logistics, production, purchasing, finance, marketing and research and development. While each process will interface with key customers and suppliers, the customer relationship management and supplier relationship management processes form the critical linkages in the supply chain.