Supply Chain Management

Overview

Every organization has internal supply chains and links to external suppliers and customers. Interlinking organizations span the spectrum from raw materials to production and distribution to finished products and services to the consumer. The structured dependency of such chains, the uncertainty of forecasts, systemic delays, unexpected disruptions are amplified as individual links in the supply chain try to optimize their own performance. Even minor changes in the environment and external conditions can cause wild swings in supply chain operations and performance.

Modern operations and management theories can stabilize supply chains and optimize performance to benefit the supply chain system as a whole. Strategy and tactics of supply chain management include “how to” techniques to implement, measure, and reward to maximize supply chain throughput and flow. Topics from the field of operations research and analytics, lean and six sigma, risk management, and theory of constraints contribute to reduce variability, right-size inventory, shorten response time, minimize stock-outs, increase variety, and cut operational costs all at the same time. A well-functioning supply chain can dramatically reduce waste and increase productivity and profits.