SCM process requires to be changed from managing individual functions to integrating activities into key supply chain processes. Supply chain business process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information. The key supply chain processes stated by Lambert are:
- Customer relationship management
- Customer service management
- Demand management
- Order fulfillment
- Manufacturing flow management
- Supplier relationship management
- Product development and commercialization
- Returns management
The other key supply business processes along with the processes stated by the Lambert are :
- Customer service management
- Procurement
- Product development and commercialization
- Manufacturing flow management/support
- Physical distribution
- Outsourcing/partnerships
- Performance measurement
a) Customer service management process:
Customer service provides the customer with real time information on scheduling and product availability by linking the company's production and distribution operations.
b) Procurement process:
Strategic plans are drawn up with suppliers to procure the raw materials which in turn support to manufacturing and development of new products.
c) Product development and commercialization:
In this process customers and suppliers must be integrated into the product development process in order to reduce time to market.
d) Manufacturing flow management process:
The manufacturing process produces and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes and must accommodate mass customization.
e) Physical distribution:
The physical distribution is the movement of a finished product to customers. Physical distribution process links a marketing channel with its customers.
f) Outsourcing:
Out sourcing of the services allows company to focus on the criteria that provides competitive advantage for the company. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to
specialists or logistics partners.
g) Performance measurement:
There is a strong relation between the supplier and customer integration to market share and profitability. According to experts, internal measures are generally collected and performance is analyzed by the firm including cost, customer Service, productivity measures, asset measurement, and quality. External performance can be measured through customer perception measures and best practice benchmarking.
h)Warehousing management:
Warehousing management is carrying the valuable role as a case of reducing company cost and expenses. In case of perfect storing and office with all convenient facilities in company level, it helps in reducing manpower cost, dispatching authority with on time delivery, loading & unloading facilities with proper area, area for service station, stock management system, etc.
Customer service provides the customer with real time information on scheduling and product availability by linking the company's production and distribution operations.
b) Procurement process:
Strategic plans are drawn up with suppliers to procure the raw materials which in turn support to manufacturing and development of new products.
c) Product development and commercialization:
In this process customers and suppliers must be integrated into the product development process in order to reduce time to market.
d) Manufacturing flow management process:
The manufacturing process produces and supplies products to the distribution channels based on past forecasts. Manufacturing processes must be flexible to respond to market changes and must accommodate mass customization.
e) Physical distribution:
The physical distribution is the movement of a finished product to customers. Physical distribution process links a marketing channel with its customers.
f) Outsourcing:
Out sourcing of the services allows company to focus on the criteria that provides competitive advantage for the company. This movement has been particularly evident in logistics where the provision of transport, warehousing and inventory control is increasingly subcontracted to
specialists or logistics partners.
g) Performance measurement:
There is a strong relation between the supplier and customer integration to market share and profitability. According to experts, internal measures are generally collected and performance is analyzed by the firm including cost, customer Service, productivity measures, asset measurement, and quality. External performance can be measured through customer perception measures and best practice benchmarking.
h)Warehousing management:
Warehousing management is carrying the valuable role as a case of reducing company cost and expenses. In case of perfect storing and office with all convenient facilities in company level, it helps in reducing manpower cost, dispatching authority with on time delivery, loading & unloading facilities with proper area, area for service station, stock management system, etc.
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