Delivery to the sales department
Order to the purchasing department
Production management and procurement management, and with an input from supplier and output to the client As shown in this example, there are many opportunities for the logistics process can be delayed, or there may be errors in queue management the communication of the various information from the maintain queueing concepts various stakeholders in the process. The objective is Thus, the efficiency of this process in order to create value for the customer through various logistical coordination mechanisms. This will be described in Chapter on Organization of logistics.
Companies included as previously often mentioned in the supply chains that compete with other supply chains, which means that logistics task is extended from a business perspective to include more companies in a so-called supply chain. This task has been named Supply Chain Management, or abbreviated to SCM, and will here be defined as follows made This definition describes how the logistics task is extended from an inter-functional coordination within the company to an queue management inter-organizational coordination of logistics activities across companies. The task extended a supply chain level. In addition, highlights the fulfillment through managing relationships and that it is not just about increasing profits in the company (as described in the definition of logistics concept), but the goal is to achieve sustained competitive advantage. In Fig is an example in a supply chain.
Fig An example of a supply chain in the grocery industry. Management (SCM) SCM covers activities which controls the material and information flow from raw material extraction to the end customer in the supply chain by integrating these activities through the management of relationships between companies in queue management order to achieve sustained competitive advantage. Upstream Downstream Suppliers Manufacturers Wholesalers Retailers Of Consumer Supply Chain Logistics and Supply Chain Management Fig shows an example of a supply chain in maintain queueing concepts the grocery industry, includes several companies that supply products to each other in sequential progress. Companies located forward of the chain against the customer called downstream and those which are behind, referred to as upstream. SCM process For example.
Proceed as follows If companies in this supply chain not cooperate and exchange information with maintain queueing concepts each other, they must each guess (forecasting) and error for, how much to buy and stock. Occurs because each company queue management responds to the current demand from the client and using that to determine how much to be purchased from its supplier. In the event of fluctuations in demand, the company will increase its storage and deliver more orders than currently is needed.