Supply chains procurement Supply chain The supply chain

Supply chains & procurement

Supply chain The supply chain is the term given to the different steps required in the production process in order to get a product to the end user. Value is added at each stage of the supply chain. Organisations in the supply chain can include: Suppliers Distributors Hauliers Retailers Warehousing and storage

Supply chain management (SCM) is the management of both materials and information within the supply chain. The use of technology is now prevalent in supply chain management, with SCM software regularly used within the operations function of many firms.

Procurement is concerned with purchasing and supply. Procurement covers the full supply chain including: Negotiation of contracts Purchasing Storage Distribution

Choosing suppliers The supply chain relies on suppliers of materials and services. Firms therefore benefit from ensuring they choose the right suppliers. Important factors when choosing a supplier include: Communication flows between the organisations Value for money Quality of the product or service Reliability of delivery Financial security of the supplier

Benefits of reliable suppliers Benefits include: Improved customer service Reduced costs Consistent quality Greater flexibility to cope with fluctuations in demand