Activities in Supply Chain Management (FMCG)

SCOR is a supply chain management model promoted by the Supply Chain Management Council. Another model is the SCM model proposed by the Global Supply Chain Forum (GSCF). Supply Chain activities can be grouped into strategic, tactical, and operational levels of activities.


Strategic

  • Strategic  network optimization (number, location, size of the warehouse, distribution center, facilities)
  • Strategic partnership with suppliers, distributors, and customers, creating communication channels for critical information and operational improvements such as cross-docking, direct shipping, and third-party logistic
  • Product life-cycle management
  • Information technology infrastructure
  • Where-to-make and what-to-make or buy destinations
  • Aligning overall organizational strategy with supply strategy


Tactical

  • Sourcing contracts and other purchasing decisions
  • Product decisions (contracting, scheduling, and planning process definition)
  • Inventory decisions (quantity, location, quality of inventory)
  • Transportation strategy (frequency, routes, contracting)
  • Benchmarking of all operation against the competitor
  • Implementation of best practices throughout the enterprise
  • Milestone payments
  •  Focus on customer demand


Operation


  • Daily production and distribution planning
  • Production scheduling
  • Demand planning & forecasting (sharing forecast with suppliers)
  • Sourcing planning (current inventory, forecast demand)
  • Inbound operation (transportation from supplier & receiving inventory)
  • Production operation (consumption of material, the flow of finished goods
  • Outbound operation (fulfillment activities, transportation to customers)
  • 8. Order promising, accounting for all constraint in the supply chain (all suppliers, manufacturing facilities, distribution center, customers)




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