What is a Supply Chain Management? Detailed Explanation by Jonathon KarelseTyler Austin / December 12, 2017
The process of oversight of information, material, and finances moves from supplier to manufacturer to wholesaler to retailer to consumer is called as supply chain management said by Jonathon Karelse in an interview. Supply chain management includes mixing and organizing these flows within and among the companies. It is said that the last goal of any efficient supply chain management system is to decrease inventory (with the hypothesis that products are ready when required). As a solution for effective supply chain management, advanced software with Web interfaces are competing with Web-based application service providers often called as ASP who agree to give part or all of the Supply Chain Management service for companies who hire their service.
Jonathon Karelse works with NorthFind Partners, a company that renders a network of specialist management practitioners to customers looking to enhance their forecasting, demand planning, and operations. Jonathon Karelse further said that Supply chain management flows is divided into three primary flows which as follows:
- The product flow.
- The information flow.
- The finances flow.
The first flow the product flow involves the transportation of goods from a supplier to a consumer, as well as any consumer returns or service requirements. The data flow consists in sending orders and renewing the status of delivery. The financial flow consists of credit duration, payment consignment and schedules, and title ownership arrangements.
There are two main types of Supply chain management application: execution applications and planning applications. The best way to fill an order is determined by advanced algorithms of Planning applications. On the other hand, Execution applications track the real situation of goods, financial information involving all parties and the management of materials.
Some Supply chain management software is based on open data models that help the splitting of data both outside and inside the company (this is identified the enlarged enterprise, and covers essential suppliers, end customers and manufacturers of a specific organization). This distributed data may remain in various database systems, or data warehouses, at many different sites and companies.
By giving this data “upstream” a company’s suppliers, and “downstream” a company’s customers, Supply chain management software is likely to reduce costs, enhance the time-to-market of products, and grant all individuals in the supply chain to manage current resources better and plan for future needs.
Growing numbers of organizations are using to Web sites and Web-based software as part of the Supply chain management solution. Many major Web sites give e-procurement marketplaces where companies can trade and even make a sale to suppliers.
Read more such detailed interview of Jonathon Karelse on supply chain management and Business Forecasting.