Philosophy of Supply Chain Management

Abstract
This paper describes the basic philosophy to supply chain management in order to develop and implement comprehensive supply chain strategies for Sony Corporation in global operation. Sony is committed to fulfilling its responsibility to society as a corporate citizen, including managing its supply chain in a responsible manner. To achieve this goal, Sony is working with its business partners, suppliers and subcontractors to help ensure that they adhere to the same high standards as Sony in the areas of human rights, labor conditions, health and safety, and environmental protection. After an overview of supply chain management, strategy and issues, a supply chain design decomposition is presented. It separates objectives and…show more content…
Here are some of the benefits provided by SCM: * Purchasing
SCM offers an advantage of making it easier for companies to manage all aspects of purchasing and production. Companies using this system develop a set of metrics to monitor the supply of goods. This metric system promotes purchasing raw products both in an efficient manner and in a way that customers receive high quality in goods produced. * Collaboration
SCM develops a chain of businesses to work with. This group of interconnected businesses works together for one main goal: to provide customers with the goods and services they demand. SCM systems choose suppliers for raw products as well as distributors. The company uses different suppliers and distributors based on customer demand. * Lower Costs
These systems use many suppliers and distributors, allowing a company to choose the most cost- effective ones. An SCM system helps companies plan how much raw material is needed to meet customer demand. This allows companies to have a lower amount of inventory on hand at all times. Purchasing agents can then identify ways to save money when purchasing raw products. * Cycle Time
A cycle refers to the amount of time it takes a business to complete an entire process. When the methods of SCM are used, the most efficient means of operations are discovered. This helps improve the time it takes to complete a cycle.
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