THE SEVEN PRINCIPLES OF SUPPLY CHAIN MANAGEMENT (2024)

FAQs

THE SEVEN PRINCIPLES OF SUPPLY CHAIN MANAGEMENT? ›

Principle 7: Adopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently.

Principle 7: Adopt channel-spanning performance measures to gauge collective success in reaching the end-user effectively and efficiently.

Though experts can tell us about different supply elements, seven components commonly make up the supply chain process. They are – Planning, Information, Sourcing, Inventory, Production, Transportation, And Return of goods. Every person aspiring to become a supply chain manager must know these in detail.

In this step, we look at the 7 Rs of logistics. So, what are the 7 Rs? The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.

Connect 3.47 (1.38) Create 3.31 (1.25) Customise 3.44 (1.50) Coordinate 3.81 (1.17) Consolidate 3.88 (0.96) Collaborate 3.06 (1.34) Contribute 2.09 (1.04) 100 Journal of Marketing Development and Competitiveness Vol. 10(1) 2016 Page 8 Figure 3 groups the cases based on their position in the supply chain.

7 key quality management principles—customer focus, leadership, engagement of people, process approach, improvement, evidence-based decision making and relationship management.

These principles are: segment customers based on their service needs; drive operations from demand; differentiate products closer to the customer; source strategically; develop supply chain technology strategy; and use supply chain spanning performance measures.

DU's six pillars of SCM (Design, Source, Plan, Make, Deliver, Sustain) are similar to the SCOR model but different in that it enables the supply chain system to be a key strategic element of a business model versus only being in a tactical support role.

Innovation may be applied to any or all four elements: integration, operations, purchasing, and distribution. The sole purpose is to bring down the overall cost and cycle time, thereby generating a profit and creating a happy customer base. Today's market is highly competitive.

The significance of the seven R's of logistics is that they explain the function of logistics services and the process by which items meeting specific criteria, such as time, quantity, and price can be moved concurrently.

What are the 5 P's of logistics? ›

The 5 P's of logistics are an essential framework for logistics management. Your shipping and logistics company follows these 5 basic principles in order to provide you with the best service possible. The 5 P's include people, products, processes, partnerships, and performance.

Six Sigma is a methodology that utilizes statistical tools and concepts to identify variations or defects in a process. An Accredited Six Sigma Certification in Supply Chain Management indicates an individual has achieved a particular level of knowledge in the study and application of this methodology.

The core principle of Six Sigma is to improve process efficiency by eliminating waste and reducing variations. In the supply chain, this translates to streamlining processes, reducing lead times, and optimizing inventory management.

Reaping the Rewards

While these companies have pursued various initiatives, all have realized the need to integrate activities across the supply chain. Doing so has improved asset utilization, reduced cost, and created price advantages that help attract and retain customers—and thus enhance revenue.

Today, competitive advantage increasingly depends on integrating eight key supply-chain processes—customer relationship management, customer service management, demand management, order fulfillment, manufacturing flow management, procurement, product development and commercialization, and managing returns—into an ...