06-19-2007, 07:52 AM
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Supply Chain Guru
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Join Date: Oct 2005
Australia
Posts: 42
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Supply Chain
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http://www.procurementtips.com/attac...1&d=1182232231
The Supply Chain Management process is at the very center of all the core operational processes of a company. It plays the role of a central nervous system regulating the product flow by managing the associated information flow that runs through a company.
It has very strong linkages with major core processes, such as product development management, purchasing management and customer relationship management.
For instance, the linkage between the product development management process and the Supply Chain Management process is bi-directional. On one side, the product development process feeds the Supply Chain Management process with the new product introduction plans and engineering change notices on bill of materials and routings. In return, the Supply Chain
Management process provides the product development process with supply chain constraints that need to be considered when scheduling the development of new products, to ensure that these new products will be available for the market at the right time.
Regarding the interaction between Supply Chain Management and Customer Relationship Management, the latter provides the former critical information regarding customer priorities, product phase-in and phase-out, pricing conditions, and promotions--which are all essential inputs for the Supply Chain Management process to optimally allocate the available product supply.
In return, the Supply Chain Management process provides the Customer Relationship Management process with information on product availability and
the resulting product allocations by sales channels or specific customers.
Finally, the relationship between Supply Chain Management and the procurement process is quite straightforward: the Supply Chain Management process provides the procurement process with the future purchasing requirements that have been derived from the demand and production plans, while the procurement process provides visibility into supply constraints -- in other words quotas imposed by suppliers -- that need to be considered to
generate valid supply chain plans.
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David van der Walt
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