Supply Chain Management

Most companies compete in an environment characterised by:

• Turbulent and dynamic markets, where the customers requirements change rapidly and unforeseeable.
• Strongly segmented markets, where various customers have varying requirements for products and services.
• Market requirements for multiple product varieties and customisation of both products and services.
• Increasing customer demand for "experiences", and not merely physical products.
• Global competition, which forces companies to become faster, better and cheaper.

These are the challenges that have made supply chain management an important management toll and competitive parameter for many firms.(Jespersen&Skjottarsen 2005:9)

The supply chain encompasses all organisations and activities associated with the flow and transformation of goods from the raw materials stage, through to the end user, as well as the associated information flows. Material and information flows both up and down the supply chain. Supply chain management is the integration and management of supply chain organisations and activities through co-operative organisational relationships, effective business process, and high levels of information sharing to create high performing value systems that provide member organisations or sustainable competitive advantages. (Jespersen&Skjottarsen 2005:11)

A generic supply chain model