“Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies” (Definition of SCM as per Council of Supply Chain Management Professionals (CSCMP), 2017).
In today‟s competitive environment, SCM is the way of running a business and consists of doing activities that are required to fulfill customers‟ needs. The competition is between the supply chains and not between the organizations. Thus, it is essential for an organization to implement a supply chain strategy effectively. The top reasons for the effective implementation of the supply chain are reduced costs of operation, improved inventory, improved customer satisfaction, increased flexibility, and improved lead times. In order to have successful SCM implementation following factors needs to be considered
- The long-term relationship between supply chain participants
- Resource sharing (knowledge, assets, and capabilities) between supply chain participants
- Integration between supply chain planning and business planning
- Integration of all functional areas
- Internal readiness- includes the sufficient provision of human and financial resources and adequate IT systems to facilitate and establish internal SCM objectives that are crucial to enhancing SCM adoption.
Thus, in order to realize the supply chain vision into reality, organizations need to invest in enabling infrastructure and IT.
For citing this article use:
- Arora, R. (2017). Implementing IT enabled Supply Chain Management A Study of Indian Consumer Packaged Goods Sector.