Integrating Supply Chain Management into Operations Management curricula

Supply Chain Management (SCM) has received considerable attention recently from both industry and academia. The importance of the philosophy lies in its broad vision for improving the movement of goods from their initial sources all the way through final delivery to the end customer. Traditionally Operations Management (OM) programs have dealt with the activities carried out by manufacturers, distributors, and their suppliers through courses in logistics, manufacturing strategy, quality, purchasing, manufacturing planning and control, and related information systems courses. The SCM approach, however, requires OM programs to demonstrate the position the manufacturer/distributor holds in the supply chain, the functions it will interface with, and, most important, how to work within the supply chain to optimize the whole instead of the individual parts. The major SCM programs that influence the chain at multiple points are strategic alliances, supplier reduction, Electronic Commerce, and JIT. A strategic alliance is perhaps best described as vertical integration without one company owning the other members of the chain. The buyer at any purchasing point forms a strategic alliance by selecting a key supplier, sometimes certifying that supplier, and forming a long term agreement. The agreement is based upon the supplier proving it can meet the buyer's needs for quality, price, flexibility, and on time delivery.

Integrating Supply Chain Management into Operations Management curricula Conference Paper