Business management has entered the era of network competition. Instead of brand versus brand or resource versus resource, configurations of suppliers, resources, and brands compete against each other – entire supply chains against other supply chains. Increasingly, the management of collective processes in the supply chain is referred to as Supply Chain Management (SCM). According to the definition provided by The Global Supply Chain Forum in 2001, Supply Chain Management (SCM) is the integration of key business processes from the end user through suppliers (and vice versa) that provide products, services, and information that add value for customers and stakeholders. Effective supply chain management therefore requires a shift from managing individual functions within an enterprise towards integrating activities within the company and within the core business processes across a network of firms. It seems that the way to achieve this integration poses a major challenge. Assuming that in every case the customer is the essential center of attention, another important element that determines effective supply chain management is the creation of structures that – based on an efficiently operating information flow system – enable a rapid response to changes (in demand, in production and supply systems).
The article comes from the magazine “Logistyka” 2003/6.