CHAPTER 3: Strategyi Initiatives for Implementing Competitive Advantages

SUPPLY CHAIN MANAGEMENT....

Whose know what is Supply Chain Management (SCM)?

• Means managing and maintain all the supplier relationship. 
• click here for better definition SCM .=)
• In this software consists of four basic component which are:

1. Supply chain strategy.
2. Supply chain partners.
3. Supply chain operation.
4. Supply chain logistics.

SCM is a software using widely in organization to ensure their company running smoothly. For example Tesco, this supermarket needed to have a good relationship with their supplier to ensure Tesco can supply their product to customer.

This software have a few steps before the product can reach to the customer.

• RAW MATERIAL

Before it is can be a product, the organization will bought raw materials from their supplier. For instance, screw to make a component of computer. Each step of process to produce a computer have their own suppliers. Which all the organization should maintain their relationship between their suppliers.  

• COMPONENT

 Component is something the combination of raw materials to create a module. For example, computer is the module meanwhile the equipment inside the computer is the component  to produce a computer.  

• MANUFACTURER

After making a component process, manufacturer will ask the supplier sent it to the factory to making a final steps to become a computer. which is the manufacturer will complete the task to ensure the computer can be use in future. After complete the process, manufacturer will deliver those items to the retailers.

• RETAILER

After manufacturer delivered the product, retailer will market their product to ensure fulfill  the customer demand.

• CUSTOMER

Customer will purchase the product to ensure they can get their needed. Thus it is the final stages which the product have been delivered to the customers and they have their satisfaction.