Objectives Of Supply Chain Management

Supply chain management

This department is almost new nowdays, due the changing world which we are living and also adapting to a new and more globalizated world. Supply management consist of all parties directly or indirectly involved in fullfilment of a customer. In this process, a lot of people and departments are involved, as Manufacturers, Marketers, Suppliers and so on. But we have to keep in mind that the fundamental objective of this department is to add value to the enterprise. To reach that goal, the supply chain management become a tool to accomplish strategic objectives like:

• Reducing Working Capital

• Taking assets off the balance sheet

• Accelerating cash to cash cycles

• Increasing inventory turns and so on.

By reducing working capital, this department reduce cost. Also by the movement of

Inventory, avoiding the accumulation of stock and giving movement to raw material and final products. And the last objective is also related to the convertion of raw material in final products to accelerate cash cycles.

Those were the main operative objective which nowdays Supply chain mannagement is in charge to, but also there are others objectives that this department is in charge to. This objective were changing since this department took the enought strong to be called as a new department, but also those objectives are mmore related to add value to te enterprise and, by that way, creating this enterprise more profitable.

The administrative objective is nowadays:

• Operational analysis and Desing materials Handling

• Distribution Strategy

• Operational Improvements, Distribution management

• Computer systems

• Warehouse Desing Proyect Management

• Operational Commisioning

• Computer simulation

• Technical Seminars

There are the mayor objectives that are related to the operational functioning of an enterprise. Tose objectives are related to the operational ones in so many ways. For example, by the perfect of the enhancement of sistribution strategy and management the enterpreise can save money, by looking for the best options they have to archieve their objectives but it also the operational objective of accelerating the inventory turning on is archieved and the money cycle indeed. By the computer systems is also archieved the operational objective of adding value to enterprise, enhancing the process of Warehouse Desing Management and immproving a better communication to suppliers.

Also its important to highligh one of the most interesting part of this department, which is the evolution and the development. In the future, this department of Supply mannagement will be in charge of so others responsabilities like: Customer service focus and information technology, those operational and administrative objectives to add more value to the enterprise

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