Supply Chain Management (SCM) is that the management of the flow of products and services from point of origin to point of consumption. As a Lean Organization, Supply-chain management is a cross-functional approach that focuses to manage the movement of raw materials into an organization, internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the top consumer. As organizations strive to specialise in core competencies and become more flexible, they reduce their ownership of raw materials sources and distribution channels.SCM is a management approach that integrates Service Functions of an Organization as it covers the following functional areas maintains a desired balance to satisfy all stakeholders of the Value Chain:
Just-in Time is a methodology in Lean Manufacturing that is aimed primarily at reducing times within the production system as well as response times from suppliers and to customers. It originally mentioned the assembly of products to satisfy customer demand exactly, in time, quality and quantity, whether the `customer' is that the final purchaser of the merchandise or another process further along the production line.Just in time is a common inventory management technique and type of lean methodology designed to increase efficiency, cut costs and decrease waste by receiving goods only as they are needed.
Distribution logistics (also known as transport logistics or sales logistics) is the link between Operational Facility and the Market. The area comprises all processes across the chain - from manufacturing companies to customers. Customers, here, is a term that includes final user as well as receiver at each nodes or points across the chain including the Internal Customers of the manufacturing facility itself. In concrete terms, distribution logistics includes goods handling, transport and interim storage. Sustainably structured information, Strategic decision-making and controlled processes are essential for implementing successful transport logistics.
With a proper Logistics and Distribution Management System, an organization can ensure reliability, delivery-flexibility, on-time delivery and best delivery condition, thereby satisfying the customers to the fullest. The implications of lean manufacturing extend beyond the production floor to warehousing and fleet operations as well. The warehouse is the core of manufacturing operations, moving material in and completed products throughout the facility and out the door. Warehouse efficiency impacts the bottom line. Due to high traffic and growing importance of warehouses, the potential to go lean in these areas is huge as it directly reflects in the Cash-flow.