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February 27th, 2006
Supply Chain Management Systems

Supply Chain Management Systems

by Staff Writer

Systems of supply chain management tend to focus on three main areas: strategic, tactical, and operational. No matter what tack is taken, however, the end goal is the same: streamlining the supply chain and eliminating inefficiencies. The result, it can be assumed, is higher customer satisfaction and full integration into an overall architecture of company productivity.

Strategic solutions can focus on factors like the location and size of distribution facilities. Sometimes an underwhelming set of distribution centers can provide the original lag time that ends up crippling, or at least slowing, an entire supply chain. Partnerships undertaken with other parties, such as suppliers, can end up affecting this flow as well. Also, a company’s IT structure can end up mucking up supply chain strategies if they are not designed properly.

Tactical decisions have to do specifically with the detailed micro-level of the supply chain. Their management can include questions about things like transportation, benchmarking, and sourcing. Each of these seemingly-small headings can themselves balloon out into a variety of concerns as well. Transportation, for example, can end up involving route and contract disputes.

Finally, operational supply chain management features a variety of long-term or hypothetical planning, which some companies choose to undertake using the help of business process management tools. The goal, of course, is to create a seamless architecture. From this healthy parent tree, wilted and less efficient branches can then be excised easily.

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