Introduction to SCM


DURATION: 2 days


Demand Management

  • Needs assessment to ensure that goods or services are acquired in order to deliver the agreed service
  • Precise specifications
  • Linking requirements to the budget
  • Analysing the supplying industry

Acquisition Management

  • Deciding how to approach the market
  • Establishing the total cost of ownership of each type of asset
  • Ensuring that bid documentation is complete and contain evaluation criteria
  • Evaluating bids in accordance with published criteria
  • Ensuring that appropriate contract documents are signed

Logistics Management

  • Setting inventory levels
  • Receiving and distributing material
  • Stores, warehouse and transport management
  • Reviewing vendor performance
  • From these processes, the financial system is activated to generate payments.

Disposal Management

  • Obsolescence planning
  • Maintaining a data base of redundant material
  • Inspecting material for potential re-use
  • Determining a disposal strategy
  • Executing the physical disposal process

Performance Management

  • Monitoring to determine whether proper processes have been followed and desired objectives achieved
  • Compliance to norms and standards
  • Cost efficiency of SCM process (ie the cost of the process itself)
  • Whether supply chain practices are consistent with the government’s broader policy focus