School of Information Systems

Supply Chain Management

An activity yang consists of coordination, scheduling, and controlling to procurement, production, stock, and sending product or service to customer that covers daily administration, operational, logistic, and information processing from customer to supplier.

There are 3 main component at Supply Chain Management:

1. Supplier

2. Organization

3. Customer

There is also the Supply Chain Management process through an intermediary

Upstream Supply Chain is a process where the company get supplier from outsider to get new raw material

Downstream Supply Chain is a process where the goods distribution by the company to customer which is usually done by external distributor

There are 4 pillars of Supply Chain Success by IGD :

1. Customer centric

The main goal is for the customer and make its upstream process to support services to the customer

2. Powered by people

Utilizing the ability of people to add value, although there are some abilities that are lacking in some fields. This means that capturing, holding, and training are very important elements for SCM.

3. Transformed by technology Innovation in the field of technology is very helpful in changing the supply chain. The main areas include automation, synchronization and transition to data-driven.Resilient and responsive

4. Resilient dan responsive.

With an increasingly changing environment such as increasingly evolving technology, political and economic impacts, SCM must be able to keep abreast of these developments by considering all factors such as risk and impact for the future.

The processes that usually exist in Supply Chain Management are:

1. Planning

There are several activities involved in the planning stage, from forecasting consumer demand, purchasing planning, and production planning, to labor and transportation preparation.

2. Purchasing or Procurement

The procurement process usually involves several stages, namely the submission of a purchase, the appraisal of the submission, the approval of the purchase, and ordering to the supplier.

3. Production

In this stage, the production process is changing all raw materials that have been bought before into finished products. Usually involves not only human but machine too

4. Warehouse Management

After the goods become finished products, they must be stored in a warehouse. Warehouse management consists of the process of entering and removing goods, taking and packing, cross-docking, and stock taking. The point is, entry and exit goods must be noted in detail

5. Order Delivery

After the ordered items are taken from the warehouse and packaged, the next step is to send them to the customer. Couriers and transportation must be prepared in advance so that goods can be sent immediately.

6. Order Returns

Order returns usually occur when a consumer submits a return due to damage, error, or delay. This process involves several activities such as checking the condition of the

product, authorizing a return, replacing the product, and scheduling delivery, refunding money.

A. Raharto Condrobimo