Institute for Supply Management - Publications - NAPM InfoEdge

NAPM InfoEdge
February 2000, Vol. 5 No. 2

Making Internal Preparations for SCM

Supply chain management (SCM) has come to hold an important place within organizations’ value-added purchasing and supply management strategies. It’s been credited with saving millions of dollars, improving profits, and changing the way that organizations view their roles within supply chains. In many instances, full implementation has not been realized, but the terminology and the philosophies for more integrated relationships, reducing total costs, improving processes, more comprehensive joint activities, and optimizing value have made their way to some extent into almost every organization. By its nature, supply chain management, or supply chain value analysis, involves participation by two or more members of a supply chain. For that reason, setting a foundation with supply partners and mutually developing and effectively communicating expectations about changes, improvements, and the relationship is vital. Even successful purchasing organizations must sell these concepts to their supply partners.

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