Total supply chain effectiveness covers the end-to-end process architecture in the area of demand management, supply management and logistics. It basically integrates all supply chain requirements: plan, source, make, deliver, return and enable outlined by SCOR model. Demand management deals primarily with plan: forecast, customer needs, inventory days of supply and market intelligence. Supply management is about sourcing and procurement of goods and services. Logistics is accountable for deliver and return, moving products from one to another for adding value and also return. Supply chain performance enhancement is enable, in order to establish effective supply chain.
Within and among supply chains there are product flow, information flow, capital/cash flow and relationship flow.
Managing these flows appropriately will ensure the agility, resilience, reliability and responsiveness of supply chain in the changing and dynamic environment both in the internal organization and in responding external factors: market supply and customer demand, changing regulations, socio-political dynamic, etc.
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