Supply Chain Management

Supply Chain Management involves the planning and management of all activities pertaining to sourcing, procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, Supply Chain Management integrates supply and demand management within and across companies.strat_logis_supp_chain_diagram2

It is an integrating function which is primarily responsible for linking major business functions and processes ‒ within and across organisations ‒ into a cohesive and high-performing business
model. It includes all of the logistics management activities noted above, as well as manufacturing operations. In addition to this, it drives coordination of processes and activities with and
across marketing, sales, product design, finance and information technology (CSCMP, 2006).

Supply Chain Management (SCM) is taking priority on the agendas of CEO’s in Africa because of three major changes:

  • Firstly, emerging technologies have made it possible for effective communication to take place between supply chain partners
  • Secondly, new paradigms, such as strategic sourcing, have developed on the continent making it easier for businesses to harness their resources for the benefit of the whole company
  • Thirdly, the rapid skills development of employees is making it easier for supply chain members to assume responsibility and make decisions for mutual benefit