This introductory course provides a fundamental understanding of **Supply Chain Management (SCM)**, defining its scope, key components, and vital role in organizational success. SCM is the integrated management of the flow of goods, services, and information from point of origin to point of consumption, aiming to maximize customer value and achieve a sustainable competitive advantage. Participants will learn the core functions, including procurement, logistics, manufacturing, and inventory management, and understand how they interconnect. This course is the essential starting point for anyone seeking to grasp how modern businesses deliver products and services efficiently to the end consumer.
Supply Chain Management Basics (SCMB)
Supply Chain Management and Procurement
October 25, 2025
Introduction
Objectives
Upon completion of this course, participants will be able to:
- Define Supply Chain Management (SCM) and explain its strategic importance to a business.
- Identify the key components and flows (material, information, financial) within a supply chain.
- Understand the core functions of procurement, logistics, and operations management.
- Explain the basic concepts of inventory management and the costs associated with holding stock.
- Differentiate between push and pull supply chain strategies.
- Describe the role of information technology in modern supply chain visibility and efficiency.
- Identify common supply chain risks and basic mitigation strategies.
- Understand how SCM contributes to customer value and competitive advantage.
Target Audience
- New Hires in Supply Chain, Logistics, or Procurement Departments
- Administrative and Support Staff interfacing with the Supply Chain
- Sales and Marketing Personnel seeking to understand fulfillment processes
- Finance and Accounting Professionals reviewing supply chain costs
- Entry-Level Managers in Manufacturing or Operations
- IT Staff supporting supply chain systems
Methodology
- Interactive discussions on personal SCM experiences (customer perspective).
- Case study analysis of a simple SCM failure (e.g., stockout scenario).
- Group activity: mapping a simple product's supply chain flow.
- Individual exercises on basic inventory cost calculations.
- Quizzes on SCM terminology and concepts.
Personal Impact
- Clear understanding of the big picture of business operations.
- Improved cross-functional communication and collaboration.
- Enhanced career prospects in operations and logistics roles.
- Foundation knowledge for pursuing advanced certifications (e.g., CSCP, CPIM).
- Ability to identify waste and inefficiencies in day-to-day work.
Organizational Impact
- Improved internal alignment between departments (Sales, Finance, Operations).
- More effective communication with suppliers and logistics partners.
- Reduced organizational silos and enhanced process efficiency.
- Lower operational costs through better basic inventory control.
- A standardized language for supply chain discussion across the enterprise.
Course Outline
Unit 1: Introduction to Supply Chain Management
Defining the Supply Chain- Evolution and definition of Supply Chain Management (SCM)
- The scope: from raw material supplier to end consumer
- The three flows: material, information, and financial
- SCM as a source of competitive advantage
- Overview of strategic sourcing and procurement
- Introduction to manufacturing and operations planning
- Basics of inventory and warehouse management
- Fundamentals of logistics and transportation
Unit 2: Procurement and Sourcing Basics
The Role of Purchasing- Defining procurement, purchasing, and strategic sourcing
- The five rights of purchasing (quality, quantity, price, time, source)
- Introduction to supplier selection and relationship management
Unit 3: Operations and Manufacturing
Production Planning Fundamentals- Introduction to different types of manufacturing processes
- Concept of materials requirements planning (MRP)
- Quality management basics in the supply chain
Unit 4: Inventory Management and Warehousing
Inventory Control Basics- Why hold inventory: types and functions of stock
- Costs associated with inventory (holding, ordering, stockout)
- Introduction to simple inventory models (e.g., EOQ)
- The primary role of a warehouse or distribution center
- Basic processes: receiving, putaway, picking, and shipping
Unit 5: Logistics and Transportation
Moving Goods- Defining logistics and the movement of goods and services
- Overview of transportation modes (road, rail, air, sea) and selection criteria
- Introduction to freight costs and incoterms
Unit 6: Information Technology and Risk
SCM Technology- The role of Enterprise Resource Planning (ERP) systems
- Introduction to basic supply chain visibility and tracking
- Identifying common supply chain risks (e.g., disruption, quality, geopolitical)
- Simple strategies for risk mitigation (e.g., dual sourcing)
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