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Supply Chain Management: Stay One Step Ahead in Competition


In today’s business world, significant changes in strategic management are witnessed due to factors such as increasing competition, technological advancements, and globalization. One of the primary changes is the growing interest in supply chain management by businesses aiming to gain and sustain a competitive advantage. In this article, we will provide an introduction to supply chain management, discussing the concept’s functioning and components.

Supply Chain Concept

The supply chain involves bringing together raw materials, auxiliary substances, and production tools for production points, ensuring the most cost-effective and optimal conditions for the procurement of production-related processes. It encompasses delivering products to the final customers under the best conditions and costs. All activities involved in this process are organized in an integrated manner with inter-business interactions and information flow.

Supply chain management aims to eliminate any wasteful actions in areas such as logistics, inventory management, supply, customer management, product development, and financial functions. Professionals in supply chain management are responsible for planning, executing, and controlling the effective and efficient forward and reverse flow of goods and services to meet customer requirements.

Objectives of Supply Chain Management

  1. Eliminating Unnecessary Processes: Minimizing inefficiencies and unnecessary actions in supply chain processes to reduce costs.
  2. Process Renewal: Continuously reviewing business processes, making improvements, and creating more effective management strategies.
  3. Cost Reduction: Minimizing business costs throughout the supply chain and establishing a more efficient structure.
  4. Achieving High Added Value: Increasing customer satisfaction, enhancing product and service quality, and gaining a competitive advantage to achieve high added value.
  5. Executing Production at the Right Time, Right Quantity, Right Place: Balancing demand and supply effectively to provide quick and accurate responses to customer demands.

Development Stages of Supply Chain Management

Supply chain management has evolved through five stages to reach its current position, representing the evolution businesses have undergone in managing their supply chain processes.

  1. Production-Focused Approach: Businesses focus solely on production stages to improve efficiency.
  2. Product and Functional-Focused Approach: Specialization in both production stages and functional activities related to product lines.
  3. Supply-Focused Approach: Businesses prioritize supplier relationships, focusing on material procurement.
  4. Integrated-Focused Approach: Businesses work in an integrated manner throughout the supply chain to optimize processes.
  5. Strategic-Focused Approach: Businesses view supply chain management as a strategic competitive advantage and consistently focus on improvement.

Supply Chain Management and Technology

Technological advancements have significantly influenced supply chain management. Technological tools such as automation, artificial intelligence, big data analytics, and digital platforms have made supply chain processes faster, more effective, and flexible. Consequently, businesses can achieve better visibility, traceability, and decision-making capabilities in supply chain management.

Supply chain management holds strategic importance for businesses today. By focusing on factors such as efficiency, cost savings, customer satisfaction, and competitive advantage, businesses can successfully implement supply chain management for overall success.

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