Topic > Essay on Supply Chain Management - 638

Supply chain management is the management of the flow of goods. It involves the movement and storage of raw materials, inventories and finished products from the point of origin to the point of consumption. It has been defined as “the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging global logistics, synchronizing supply with demand, and measuring performance globally". Supply chain management has strategic implications for any business, identifying the required performance measures across most criteria is essential and should be an integral part of any business strategy. Therefore, the food supply chain and its management are essential for agriculture, the food industry and the market. 2.2 Business process of a food supply chain As mentioned above, the food supply chain includes the production, processing, distribution, consumption and disposal of food. A wide variety of products and companies operate in different markets and sell a variety of food products. Input suppliers/service providers offer seeds of various crops (raw materials) to primary food producers (farmers) to produce crops. Then transporters ship the crops to packing/storage facilities and food processors (production) transform the crops into different types of food products and sell them to wholesalers/retailers (distribution). Ultimately, consumers purchase their food products from wholesalers/retailers.2.3 Global food supply chainsAlthough the growing movement by consumers and grocers to "buy local", the food supply chain is progressively becoming increasingly ... middle of the paper ...... such as Kraft Foods, the Thai frozen food industry and the Australian beef supply chain, etc. In the book Quantifying the Agri-Food Supply Chain, it is described "this model (Balanced Scorecard) uses performance parameters from financial sources (for example, production cost and storage cost), customer (for example, on-time delivery and order fulfillment), business process (e.g., production adherence to plan), innovation, and technology perspective (e.g., new product development cycle time). By combining these different perspectives, the Balanced Scorecard helps a manager to understand the interrelationships and trade-offs between alternative performance metrics and leads to better decision making.” The Balanced Scorecard is more tactical and strategic than other models used in the food supply chain, primarily because it is an operationally oriented method..