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GENERAL The supply management function of an organization is responsible for various aspects of acquiring goods and services for the organization. In many organizations, acquisition or buying of services is called Contracting , while that of goods is called Purchasing . Tasks associated with supply management include:
Supply management is generally regarded as a systematic business process that includes more functions than traditional buying, such as coordinating inbound and internal pre-production logistics and managing inventory. Supply management deals primarily with the oversight and management of materials and services inputs, management of the suppliers who provide those inputs, and support of the process of acquiring those inputs. The performance of supply management departments and supply management professionals is commonly measured in terms of amount of money saved for the organization. However, Managing Risk is one of the other critical aspects of supply management; especially the risk of non-availability at the required time of quality goods and services critical for an organization's survival and growth. The increased importance of supply management in today’s dynamic global business environment has brought a need for higher levels of skill and expertise on the part of supply management professionals. Throughout the years, many professional organizations have been formed to address these needs and improve the field of supply management. One of the largest of these associations is the Institute for Supply Management™ (ISM)[http://www.ism.ws/about/]. Founded in the U.S. in 1915, ISM’s membership base includes more than 40,000 supply management professionals with a network of domestic and international affiliated associations. ISM is a not-for-profit association whose mission is to lead the supply management profession through its standards of excellence, research, promotional activities, and education. It is affiliated with the International Association of Purchasing and Supply Management (IAPSM) [http://www.ifpmm.org/index.cfm], a union of local and national purchasing associations worldwide which encompasses approximately 200,000 members. In 2004, the first supply management certification program - the Senior Professional in Supply Management (SPSM) Certification Program - was introduced. The SPSM Certification is globally recognized with employers from over 50 countries throughout the world having enrolled their supply management employees in the SPSM Certification Program as of late 2006. SUPPLY CHAIN MANAGEMENT Supply management is different than Supply Chain Management , though it can be considered a component of supply chain management. Supply chain management, which can be automated, generally refers to:
Supply Management is a complementary discipline that encompasses the alignment of organizations, processes, and systems for Strategic Sourcing , Contract Management , supplier management, spending analysis to continuously improve global supply for best-value performance in support of the strategic objectives of the business. EXTERNAL LINKS |
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