Move beyond traditonal supply chains

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Supply Chain Management and It’s Modern Interpretations

SCM Trigger Points

Supply Chain Management (SCM Trigger Points) and It’s Modern Interpretations

The expression Procurement network was created during the 1980’s to explain the need to integrate important business processes SCM Trigger Points.

SCM Trigger Points of Supply Chain

Indeed, supply chain is about integration between business functions and business processes.

It is about giving all the information which is important for any services in the industry and for partners of the company such as suppliers, retailers and so on…

In supply chain, there is a global and not a local optimisation SCM Trigger Points.

The idea is to optimize the entire supply chain and not only results of the firm. A good supply chain involves a strong collaboration between actors of the Procurement network.

Therefore, there is a change of scale concerning competition; it is not a competition between firms but rather a rivalry between types of supply chains.

Also Read: Components of Strategy

Moreover, we have to show clearly the difference between logistics and supply chains because there is often confusion about these two words.

Logistic is a term which applies for the activity of a company. It involves just the distribution of the product whereas supply chain includes logistic, suppliers, manufacturers, SCM Trigger Points retailers…

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“Supply chain” is a vast concept which has to be well understood in order to manage to have a good overview of potential problems and advantages of this sector.

Every Organization Has Different SCM Trigger Points

Every organization has different SCM (supply chain management) trigger points, which are events or occurrences that initiate a change in the Procurement network. While these points may be different for each company, there are some general SCM trigger points that most organizations share.

One such trigger point is supplier failure. When one of a company’s suppliers fails to deliver on its promises, it can cause a ripple effect throughout the entire supply chain Management. This can lead to disruptions in production and increased costs as the company scrambled to find new suppliers.

A second common SCM trigger point is market demand changes. When customer demand shifts, it can cause companies to adjust their production levels and inventory accordingly. If this adjustment isn’t made in a timely manner, it can lead to shortages or overages of products, which can then disrupt the supply chain.

Every Organization Has Different SCM Trigger Points

One such trigger point is disruptions in the upstream or downstream supply chain Management. If one part of the supply chain is disrupted, it can have a ripple effect throughout the entire system. This can cause shortages or surpluses of goods, and can lead to higher than normal prices or longer wait times for customers.
Another common SCM trigger point is changes in demand. If customer demand suddenly spikes or drops, it can put a lot of strain on the supply chain and cause disruptions. This can lead to inventory shortages or overages, and can result in lost sales and dissatisfied customers.

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About the Principal Author of Outsourcing 3.0 - Vivek Sood

Vivek Sood - Author Outsourcing 3.0

Today, Vivek and his partners are among 20-30 people on Earth who have this deep understanding of supply chain systems, practices and tools. CEOs, COOs, executives and Boards call them in the most challenging situations once they know the full potential of supply chain based transformations. Following are key milestones in Vivek’s journey:Started in 1983 as a merchant navy cadet at 18 years age, and worked his way to qualify as a Captain – qualified to take command of any merchant ship, worldwide.

  • Earned a top tier MBA from UNSW at the top of his class.
  • Joined highly regarded strategy consulting firm Booz Allen & Hamilton, consulting to the CEOs, Boards and senior management of global corporations within Australia.
  • To learn and specialise in the supply chain – against all odds, sought out the co-inventor of the supply chain in Germany and convinced him to be a partner in his firm, GLOBAL SUPPLY CHAIN GROUP, launched in January 2000.
  • More than 500 successful blue-chip projects with high impact business transformations in large corporations using the full power of SUPPLY CHAIN MANAGEMENT.
  • 4 Seminal and path-breaking business books IN SUPPLY CHAIN MANAGEMENT – these are available in bookstores and universities, and libraries worldwide.

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