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What Is Supply Chain Management (SCM)?

You may have heard about the importance of good supply chain management (SCM), especially for a multi-national firm. But what does this frequently used term mean? Below, you’ll find a definition and brief explanation of this business concept.

What is a Supply Chain?

Before defining supply chain management, it is helpful to first define a supply chain. A firm’s supply chain can be thought of as all the sequential activities that the company and its suppliers (and manufacturers) undertake in the goods manufacturing process, from production to final distribution. The supply chain can therefore also include retailers.

Supply Chain Management: A Brief Definition

Now that we have defined “supply chain,” we can move on to SCM. As the name suggests, SCM is simply the management of the supply chain. This means undertaking processes and activities that help improve a company’s supply chain efficiency, and implementing best practices throughout all stages.

Because a supply chain can potentially involve many different parties that are often dispersed throughout the world, effectively managing it can be quite a challenging task. It requires coordinating information and logistics, as well as having a holistic view of the entire supply chain process.

Where Does Supply Chain Management Fit in Business Theory and Practice?

Supply chain management is an interdisciplinary topic within business and management studies. It draws from multiple areas of study and practice, such as operations research, information technology and industrial engineering. Consequently, there are standalone degree programs that are focused on training students in SCM and logistics (logistics is a sub-category of SCM).

Why Is Good Supply Chain Management Important?

Good supply chain management can be a critical point of competitive advantage and increased revenue, notably for firms that are producing goods. It can help bring goods to consumers more quickly and efficiently, and help the firm maximize value.

How Do You Improve Supply Chain Management?

Some of the factors that companies can focus on to improve their SCM include implementing better information management systems across the entire supply chain, removing inefficiencies at all stages and maintaining strong relationships with suppliers and manufacturers.

It’s also very important to keep track of macroeconomic trends, as these can have a big impact on profitability, especially if some stages of the manufacturing process are located abroad, in countries with different currencies (which makes them vulnerable to exchange rate fluctuations, for example).


supply chain business plan pdf

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Supply Chain Management Business Plan Sample

NOV.28, 2014

Supply Chain Management Business Plan

Do you want to start Supply Chain Management Business?

Do you want to start a supply chain management business? Well that can be an amazing idea if you want to quickly start a business. One of the main reasons is that this supply chain business plan will not need you to have any specific technical knowledge or degree. You can start this business with just a few contacts and grit.

Even though it is relatively easier to start a career in supply chain management, it still doesn’t mean you should go in unprepared. The best thing you can do is go through a business plan for supply chain management. You can get a business chain management plan supply from anywhere on the internet. And if you want, this document is also a great place to look for help supply chain business plan .

Executive Summary

2.1 the business.

Clark’s Management will be a supply chain management startup owned by Clark Bridgers. The main objective of the supply chain business plan is to guide and assist companies in streamlining their supply chains in Oakland. It will offer versatile resources and services for the best supply chains.

2.2 Management of Supply Chain Management Company

To ensure that your company is well managed, you need to develop a supply chain management business plan as the first step.

In this supply chain strategy model, we will including all the important aspects of a business for buy side due diligence .

In order to make your supply chain business plan , you can study a sample pdf of supply chain management like this one. You can also use the internet to go through a plan for supply chain management filetype pdf. These will give you a good idea of what you should include in your supply chain business plan . And this will apply even if you are developing a business plan for video production .

2.3 Customers of Supply Chain Management

Our clients will be from all industrial and professional domains since supply chain is a part of the lifecycle of any product or service. Keeping that in mind, our recurring customers will include:

  • Product Businesses
  • Service Businesses
  • Hybrid Large/Small Businesses
  • Manufacturing Units

2.4 Business Target

The primary goal of our supply chain business plan is to become the most reliable and trusted option for our clients whenever they want to improve their supply chains.

The financial targets that we aim to achieve in the first two years are shown below:

3 Years Profit Forecast - Supply Chain Management Business Plan

Company Summary of Supply Chain Management

3.1 company owner.

Clark Bridgers will own Clark’s Management. Clark completed his Bachelor’s in Management about 3 years back. After his studies, he pursued a job in a corporation as a business management consultant. But he left job in pursuit of starting his own supply chain business plan .

3.2 Why the Supply Chain Management Company is being started

Clark observed that a lot of businesses are looking for ways to reduce their production costs. But there are very few businesses that offer any help in the area. He quickly realized that he could use his innovative ideas and knowledge to improve supply chain management for these companies.

3.3 How the Supply Chain Management company will be started

Step1: Plan Everything

Before you look into things like what is supply chain strategy definition, you need to consult supply chain business plan experts. They will guide you in development of supply chain organization models.

Clark decided to offer his services to both service and product based companies. So, you can use this or any related supply chain management project report pdf to get started with your own supply chain business plan . These documents will help you understand the role of supply chain management in business plan.

Step2: Define the Brand

A crucial step in starting a new supply chain business plan is to get noticed. You will have to identify and highlight your core values and market those to your potential customers to gain attention.

Step3: Establish a Web Presence

The most important part of any business in the digital age is online promotion. For this, Clark decided to establish social media presences for his supply chain business plan . He also decided to outsource a simple website through which people can book appointments and reach out.

Step4: Promote and Market

As the final step, you need to create and follow a marketing plan to promote your supply chain business plan .

Startup Cost - Supply Chain Management Business Plan

Services of Supply Chain Management

When you are starting supply chain business , one of the major things you need to figure out the services you will be providing to your customer base. You can refer to a sample business plan supply chain management for an idea.

The requirements of supply chain management in a business plan is different as compared to other plans such as aerial tourism business plan .

But since Clark decided to provide a whole array of services so this example of supply chain strategy can also be used for other ventures like internet radio business plan . You can gain a lot of insight from this plan for operations and supply strategy.

  • Identifying and Dealing with Logistics Problems

Our company will offer solutions to all basic problems that may occur in the supply chain. If, for instance, a customer complains about service quality, it can reflect poorly on the supply chain business plan . But our company ensures that most problems are identified beforehand through data analysis.

  • Price Optimization

Many businesses offer products or services that are seasonal. Since seasonal offers are not needed throughout the year, businesses have to find a way to reduce their prices and sell them. Our company will help businesses set these marketable prices through analytical software. This will ensure that:

  • Products are sold, and
  • Business is still profitable
  • Dynamic Resource Management

Businesses have limited resources. Our company will help businesses organize and allocate their resources such as equipment and workforce in a way that optimizes performance.

  • Supply Chain Consultation

Our company will also provide consultation experts that can help businesses with supply chains reduce their costs and improve their performance.

Marketing Analysis of Supply Chain Management Company

When you are describing your company for supply chain management in a business plan, you will need to describe your customer base. Identifying your customers is one of the essential steps of starting a supply chain business plan . And you have to include this information in your plan even it is a business plan template for summer camp .

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You should have detailed information about your customer. And the best way to get these details is through a market analysis. The market analysis included in your supply chain development strategy, should have all information regarding past, present and future market trends.

The supply chain strategic management is used to analyze the market prices and to figure out the financial goals of your own supply chain reporting structure. You can use a supply chain management project pdf sample like this to see how the market analysis is presented.

5.1 Market Trends

According to ExploreWMS, the number of warehouse in US have grown by 6.8% in the last five years. This means that more and more companies need better supply chain management techniques and services. And due to the shift for efficiency, supply chain management positions are increasing faster than economic averages. So, there is no deficiency of demand in the market for a supply chain management or services.

5.2 Marketing Segmentation

The potential customers of Clark’s Management are divided into the following categories:

Marketing Segmentation - Supply Chain Management Business Plan

5.2.1 Product Businesses

Our main customers will be the product based businesses that rely on the sale of their products. Since the sale of a product is affected by a lot of factors in the supply chain so these businesses are more likely to regularly use our services.

5.2.2 Service Businesses

Our second target customers will be service providing businesses much like ours. Services are also provided as a result of a supply chain that involves ideation, planning and development as some of its parts. So service businesses are also expected to utilize our services quite often.

5.2.3 Hybrid Small/Large Businesses

Every supply chain business  works for an endpoint through a series of pre-defined steps. These steps form a supply chain even in hybrid (product and service) businesses. Since these businesses are usually big corporations with their own management departments so they are likely to use our services every so often.

5.2.4 Manufacturing Units

Manufacturing units on their own also require management tips to work more smoothly. They are expected to avail our services often to streamline their operations.

5.3 Business Target

  • To become the best supply chain management company throughout Oakland
  • To increase the range of our offered services over time
  • To earn a net profit of around $30k per month by the end of the second year
  • To achieve and maintain customer satisfaction above 90%.

5.4 Product Pricing

Our prices will be a little bit higher than the market average. But we will offer more services over a longer period of time as a compensation. This will help our customers more in the long run as compared to our competitors.

Marketing Strategy of Supply Chain Management

To gain attraction in a huge industry, you need to find areas where you have competitive advantage. For this, you need a solid marketing strategy and branding so that people can recognize your offers.

In the present supply chain management report template, we are describing the marketing strategy for Clark’s Management. You can also refer to an example such as business plan supply chain management to improve your business proposal. This is helpful even if you are just starting a paintball business .

6.1 Competitive Analysis

  • We have amazing customer support available. We will deal with all customers patiently and also gain feedback for future improvement.
  • Through our physical shops, website and social media, customers have different ways to contact us. And we will respond to them at the earliest.
  • We will provide consultations and services in accordance with all the standard practices so that our customers can focus on their work without worry.

6.2 Sales Strategy

  • We will advertise through word of mouth, Google Ads, Social Media, and billboards.
  • We will provide long-term services in reasonable and market-competitive prices.
  • We will also provide special discounts to first-time and long term customers.

6.3 Sales Monthly

Sales Monthly - Supply Chain Management Business Plan

6.4 Sales Yearly

Sales Yearly - Supply Chain Management Business Plan

6.5 Sales Forecast

Unit Sales - Supply Chain Management Business Plan

Personnel plan of Supply Chain Management

No business can run without the diligence of its workers. The success of any business actually depends a lot on the behavior of employees. Clark knew the importance of hardworking and patience workforce and so he developed a selection criterion for employees. This criterion will be a part of business plan for supply chain management.  You can also find examples of this in a sample business continuity plan supply chain management on the internet.

7.1 Company Staff

  • 1 Co-Manager for overall assistance
  • 2 Purchasing Agents
  • 3 Logistics Analysts
  • 1 Operations Manager
  • 3 Planning and Expediting Clerks
  • 2 Storage and Distribution Managers
  • 3 Operations Consultants

7.2 Average Salary of Employees

Financial plan.

You can’t become successful by just selling products or services. To be profitable, you need to carry out a detailed financial analysis. Usually, like in this supply chain business plan sample, financial analysis is included. Every good supply chain management business plan has a thorough financial plan included.

In your financial plan, you need to show how you will cover your expenses with your sales and profits. You also need to identify ways to reduce your expenses and increase your efficiency.

We have provided a comprehensive financial plan for supply chain management business. But you can also refer it for business plan movie selection .

8.1 Important Assumptions

8.2 break-even analysis.

Unit Sales - Break-even Analysis

8.3 Projected Profit and Loss

8.3.1 profit monthly.

Profit Monthly - Supply Chain Management Business Plan

8.3.2 Profit Yearly

Profit Yearly - Supply Chain Management Business Plan

8.3.3 Gross Margin Monthly

Gross Margin Monthly - Break-even Analysis

8.3.4 Gross Margin Yearly

Gross Margin Yearly - Supply Chain Management Business Plan

8.4 Projected Cash Flow

Projected Cash Flow - Supply Chain Management Business Plan

8.5 Projected Balance Sheet

8.6 business ratios.

  • How do I write a business plan for supply chain management?

You can write a business plan for supply chain management by reading business plans like the one here or by consulting a business plan expert.

  • What is supply chain in business plan?

Supply chain consists of processes that are involved in the production of a product or the provision of a service. And in reference to a supply chain business plan , it includes all the details needed to start a business in supply chain management.

  • What are the examples of supply chain management?

Supply chain management is involved in all kinds of supply chains including product design, manufacturing, farming, packaging, and transportation etc.

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supply chain business plan pdf

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Business-in-a-Box's Supply Chain Plan Template

Supply Chain Plan Template

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This supply chain plan template has 14 pages and is a MS Word file type listed under our production & operations documents.

Sample of our supply chain plan template:

Supply Chain Plan

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Related Papers

International Journal of Value Chain Management

Togar Simatupang , Pairach (Champ) Piboonrungroj , Sharon Williams

The concept value chain has been promoted by Porter for more than three decades. A value chain represents a chain of activities that an organization performs to deliver a valuable product for the market. Porter’s value chain assumes that an organization is a system composed of inputs, transformation processes, and outputs. Each activity in the system involves the acquisition and consumption of resources. How the organization carries out value chain activities determines costs and profits. One enhances the competitiveness of a company by improving its value chain structure. However, little attention has been given to developing value chain thinking. This paper examines the emergence of value chain thinking and proposes new value chain thinking that involves a chain of activities linked to one another in order to sustain value. A conceptual model is presented which consists of four steps: value discovery, value design, value delivery, and value capture. A methodology is also proposed in which to operationalize the value chain thinking.

supply chain business plan pdf

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To compete successfully in today's highly competitive global environment, companies have made customer satisfaction an overriding priority. They have also adopted new management approaches, changed their manufacturing systems and invested in new technologies. Strategic management accounting examines the decision-making linked with the business operations and strategic work of financial administration as support for the same. Strategic management accounting is a theory and practice of accounting that looks at an organization's cost position, cost advantages and product differentiation in order to make market decisions. The value chain is a systematic approach to examining the development of competitive advantage. The chain consists of a series of activities that create and build value. Value chain analysis refers to a structured method of analyzing the effects of all core activities on cost and/or differentiation of the value chain.With the growing division of labour and the global dispersion of the production ofcomponents, systemic competitiveness and so value chain analysis have become increasingly important. Value chain accounting is the combination of value chain analysis and accounting theory.Value chain accounting is an important part of value chain management and a further development of strategic management accounting. Value chain accounting is a new approach on accounting subject which is combined by the theories of value chain management, supply chain management, accounting management and information technology. From the analysis about value chain theory and strategic management accounting theory,this paper proposes an accounting management framework based on value chain analysis called value chain accounting.

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The article presents the analysis of the relationship between e-business benefits and competitive advantage. Different approaches of authors towards e-business and competitive advantages have been analyzed and summed up, the analysis of the e-business impact on usual business processes has been outlined, resource-based as well as M. Porter's approaches to competitive advantage were compared. The model relating positive impact of e-business on nine different business processes and competitive advantage was developed. The model may be integrated into broader research framework constructed for the analysis of e-business development and its role in gaining competitive advantage in any industry. Although many studies confirmed that e-business solutions have a positive impact on various business processes e-business benefits do not necessarily lead to the increased profits and/or sales, thus the association of e-business value with the competitive advantage should be made with caution. The type of the article: Theoretical article.

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