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  • Essay / Supply Chain Management and the Importance of Sourcing...

    Introduction: Supply chain management (SCM) is a type of management that facilitates the movement of goods, thereby means a substantial raw material or main agricultural product that can be purchased. and sold, like copper or coffee. It contains the flow and storage of raw materials, work-in-process inventory and finished products from source to point of consumption. Furthermore, SCM is a regulatory and strategic coordination of business functions; the arrangement of these functions within the enterprise through activity within the supply chain to improve the long-term performance of individual companies and the supply chain. The objectives of Supply Chain Management are numerous. The first is to increase the amount of information. At the same time, reduce expenses on inventory and ongoing processes. The second objective is to create transparency in information and reduce obstacles that may exist. The last objection of SCM is to find an overall concept of supply operations and improve the continuity of materials, information and cash flow management. Supply chain managers must invest in improving their team's capabilities to see growing perspectives on how procurement can help the job. Some of the issues facing supply chain leaders include: The need to continue to lower prices while expanding service to consumers and encouraging the expansion of new markets and product lines. Another issue is the need to manage the complexity of selling and closing the customer. The objective of this literature review is to show the importance of SCM in business as well as to discuss some major problems of SCM and compare with other studies related to some problems of SCM and how to deal with to these problems and find a solution. Additionally...... middle of paper ...... want to be connected to assembly lines and aware of demand throughout the supply chain. Purchasing and supply management occur at all stages of the supply chain. At each level, logisticians exercise their responsibilities to demand and replace their company's products from selected suppliers to meet demand. Disorganized procurement functions can occur anywhere in the supply chain if there is a breakdown in communication. In the article “Supply Chain Management: More than Integrated Logistics”. Russell (2007), “Logistics as a management discipline originated in the military domain and later expanded to the commercial sector as business logistics. Today, the hottest topic in the business sector is supply chain management.” In other words, there are now many problems with supply chain management and these problems make this topic both huge and very interesting..