Supply Chain Management encompasses the entire process of planning, acquisitions, conversion and movement of raw and packing materials, intermediaries and finished goods across the entire distribution network.

A typical distribution network is shown in following diagram.

The Supply Chain Network calculates the expected volume of the incoming order, taking existing stock and economic lot sizes into account. This estimated demand represents a fairly precise starting point for the rest of the supply chain. The data required for planning stocks, on-order quantities, and sales forecasts is transmitted via Internet.

A typical buying request made by a retailer is shown diagram in right-side.

• Product Analysis
• Vendor Management
• Transport Management
• Production Planning
• Dynamic Pricing
• Supplier Integration
• Order Management

• Control costs
• Increased automation maximizes the efficiency of order processes.
• Integration with e-marketplaces and private exchanges allows you to quickly compare suppliers.
• Sophisticated planning tools allow you to precisely match supply with demand.
• Generate revenue
• Accurate planning improves customer service, and that helps you retain customers.
• Detailed order-status information results in higher customer satisfaction.
• The ability to respond to unanticipated demand means you can commit to more orders.
• Manage assets
• Reduced order cycle times speed the conversion of materials into revenue.
• Reduced inventories free up resources without reducing your ability to meet unexpected demand.
• Higher utilization of manufacturing capacity helps you maximize processes.
• Reduce uncertainty and risk
• Improved visibility and collaborative planning improves forecasts.
• Shorter planning cycles and reduced lead times means less guessing, reduced safety stocks, and faster response to change.
• Shared performance information and common goals among partners promote alignment and overall supply chain effectiveness.