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Supply Chain Management ,SCM, Process by Derek Hendrikz coveres planning, acquisition, procurement, purchasing, logistics, transport, storage, and disposal of assets. www.derekhendrikz.com
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Copyright © 2014
Derek Hendrikz Consulting
www.derekhendrikz.com
SCM Purpose:
To coordinate the functions of production, delivery, inventory,
location, transportation and disposal among the participants in a supply
chain to achieve the best mix of responsiveness and efficiency for the consumers of such goods & services with the aim of achieving the best
possible time, cost and quality value proposition. www.derekhendrikz.com
1. To plan and analyse the organisational needs in terms of SCM.
www.derekhendrikz.com
2. To acquire goods and services that will enable effective organisational functioning. www.derekhendrikz.com
3. To manage the movement, storage and consumption of such goods and services. www.derekhendrikz.com
4. To dispose of such goods and services, once their need within the organisation has expired. www.derekhendrikz.com
SCM Objectives to Process...
Plan and Analyse Needs
Acquire(procureme
nt)
Manage(logistics)
Dispose
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SCM Assumptions (1):
1. That and clear understanding of the organisational resource requirements and effective information analysis enables the SCM process.
2. In essence SCM must reduce the risk of organisational non-performance.
3. SCM problems are best addressed through effective policy.
4. Procurement provides a value proposition to the organisation through effectively managing the quality, cost and time relationship.
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SCM Assumptions (2):
7. The procurement risk is managed through understanding the impact of the in-source / outsource decision.
8. In-sourcing is most effectively managed through performance management methodology and outsourcing is most effectively managed through contract management.
9. Consumption, movement and storage of goods / services most accurately describes the logistical function of SCM.
10. Quick disposal of goods or services that are no longer required for organisational functioning reduces risk of organisational non-performance.
www.derekhendrikz.com
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