Supply Chain Management (SCM) : Definisi, Unsur, Hambatan dan Implikasi Strategi Supply Chain Management (SCM)

Simchi-Levi defines supply chain management (SCM) as follows (2000: 1): "It is a set of approaches used to effectively integrate suppliers, manufacturers, warehouses and stores so that goods are produced in the quantities appropriate and distributed correctly. . position and schedule to minimize overall system cost while meeting service level requirements. While Hanfield in his book Supply Chain Redesign (2002: 8) defines SCM as: "the integration and managing supply chain organizations and activities through high-level business process relationships and information sharing to create value and high-performance systems that provide sustainable competitive advantage to the organization in question.

There are 3 things to consider:

1. The purpose of SCM is to realize the effectiveness and efficiency of expanding suppliers, manufacturers, warehouses and stores. There is not good enough coordination between the parties involved, which will lead to huge losses. One of the most common effects is the "whiplash effect". This is due to the lack of coordination in the exchange of information between retail stores and distributors. On the one hand, if the store manager sees a 100-unit increase in consumer demand, this 100-unit increase will bring the number of retailers to 500 units, and the business will capture the 2,500-unit increase in demand. If we are careful, information about the number 100 can hit the company like a snowball that grows from top to bottom. And things become even more chaotic when the fulfillment of these needs is delayed in the long term.

2. SCM affects cost control.
3. SCM plays an important role in improving the quality of customer services.

Customer demands are changing faster these days, as evidenced by the variety of products on the market. For this reason, the company must be able to properly manage the company's inventory, as changes in the number of requests for certain products change the company's inventory policies. In this case, a return is false. Supply Chain Management Talks about how the supply of goods is managed by the company. However, SCM is not just about delivering goods. SCM talks about the possibilities of integrating the supply chain of goods up to the delivery of the goods in the hands of the end customer. It is very complex because there are so many parties involved throughout the process, from suppliers to companies to end-user vendors. According to Ramalhinho (October 2002), in his article "Supply chain management: an opportunity for metaheuristics", referring to the industrial world, he said: "The growing need of industrialists to market their products in the world market for concerns cost, quality and... The scope of services is determined by the need to develop more efficient logistics systems than those traditionally used.It can be concluded that a good goods management system increases competitiveness in global competition.

Key Players in Supply Chain Management (SCM)
Supply chain refers to the existence of a long chain from suppliers to customers where there are interactions with entities or what is called

Actors in this context in such a complex supply chain network. The following key actors are involved in the supply chain:
First supplier (first channel)
This is where the supply chain begins, the source that provides the raw material, where the distribution chain of goods begins. Raw material can be raw materials, raw materials, auxiliary materials, spare parts or goods.
2. Supplier-Manufacturer (1-2 lines)
The first line is followed by the second line, where the completion of the goods is defined (Done). The relationship between the two routes offers the potential for savings. For example, savings through the development of a supplier partnership concept in warehouse delivery costs.
3. Supply-producer-sale chain (1-2-3).
At this stage, the finished manufactured products are distributed to customers who usually use the services of distributors or wholesalers.
4. Suppliers-Manufacturers-Retailers-Distributors (chain 1-2-3-4)
From wholesalers it is distributed to the retail trade. Although there are some factories that sell their products directly to customers, relatively few of them use the same scheme as above.
5. Supplier-Manufacturer-Distributor-Retailer-Customer (line 1-2-3-4-5). In this case, the customer, as the final consumer, is the last chain traversed in the supply chain.

Barriers to Supply Chain Management (SCM)
SCM is something very complex with many obstacles to overcome in its implementation, so in its implementation there are stages ranging from the planning stage to the evaluation stage to continuous improvement. Furthermore, the implementation of SCM requires support from different parties, starting internally, in this case from all top management, and externally, in this case from all existing partners. In the implementation of SCM the following obstacles will appear, which support the argument that the implementation of SCM requires the support of different parties (Chopra & Meindl 2001):
1. Development of product variations. Now that consumers seem spoiled by manufacturers, we see more and more different types of products on the market. We also see the company's ever-customer-centric strategy. Once manufacturers used a strategy of segmenting customers, now consumers are more likely to be spoiled by rejecting products based on individual desires, not the desires of specific segments. The many types of products and the uncertain number of each product make manufacturers increasingly overwhelmed to satisfy the wishes of consumers.
2. Shortening the life cycle of the product. The shortening of a product's life cycle makes it more difficult for companies to master their sourcing strategy, as companies also need less time to manage certain assets. Product life cycle is defined as the age of the product in the market.
3. Customers are increasingly demanding. Supply chain management is trying to fulfill (manage) the rapidly growing demand, now customers demand fast fulfillment of the demand, although the demand is very high and not a standard (customized) product.
4. Fragmentation of supply chain ownership. This describes a supply chain that involves many parties who have their own interests, which makes supply chain management more complicated and complex.
5. Globalization. Globalization makes supply chains more complicated and complex because the parties involved in the supply chain consist of parts from different countries which may be located in different parts of the world.