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Organisational Structure of the Supply Chain Sector

The Supply Chain Management function flows through different departments in its mission to add value. A successful SCM function requires a change from managing individual functions to integrating activities into key supply chain processes. As such, the Supply Chain Management function primarily follows through a number of different departments in its journey to increase competitiveness and this may differ slightly whether the company is dealing in a product or service based environment.

These functions include but are not limited to

  • Purchasing/Procurement
  • Planning
  • Order Management/Fulfilment
  • Manufacturing
  • Logistics
  • Inventory
  • Distribution
  • Vendor/Commodity Management
  • Quality Management - This is increasingly measured through processes like Six Sigma and other process improvement techniques which again can be cross-functional
  • Supporting Functions - These can include Finance, Engineering, Sales & Marketing, outsourced providers and other key suppliers where appropriate.