SUPPLY CHAIN MANAGEMENT – AN APPROACH FOR MEDIUM SCALE ENTERPRISES

The Supply Chain Management has attracted much attention from both the Business managers and consultants, which has changed the traditional procurement and inventory planning. The developments in information technology, also have enabled major advances in information management and electronic commerce. The supply chain management is implemented in various business functions. However, most of the users of the supply chain are primarily the large organizations. The objectives of supply chain implementation are the cost reduction to yield higher profits, good relations among the partners etc. The large organizations have more negotiation power than their small supplier whereas the case is opposite with the small or medium scale enterprises. This paper deals with the characteristics of the medium scale enterprises, their negotiation power, customer business function, strong initiatives etc. The objective is to achieve the ultimate benefits for both the supplier and the operations enterprises.