Five Pillars – Part 2 – Supply Chain
Supply chain management indeed encompasses a very broad definition of identifying, procuring and managing the availability of products, resources and services of the organization that is needed to operate the business. Resources involved can be physical goods or even services or information that needs to flow smoothly among the concerned departments of the organization for smooth running of the business. Historically, the supply chain management would involve three different stages: procuring, producing and then distributing. The interactions between flows of the material, people, money, information and capital resources determine the success of the industry or company. An effective supply chain management is required for effective use of inventory. Modern day operations use high end software to regulate the supply chain of the organization. This supply chain flow can be effectively divided into three categories: product, information, cashflow.