The American Production and Inventory Control Society (APICS) was founded in 1957 for the purpose of “building and validating knowledge in supply chain and operations management.” Today, APICS is an international organization with over 40,000 members that provides training and educational opportunities in the form of professional certifications, professional courses, workshops and resource materials for supply chain management professionals. One of the certifications offered by APICS is the CSCP, or Certified Supply Chain Professional. The certification is often required by employers for key personnel in charge of managing the production and distribution of their products.

Definition of Supply Chain Management

While supply chain management incorporates logistics, its scope is far greater.

A supply chain is a system of organizations, people, technologies, activities, information and resources involved in moving materials, products and services all the way through the manufacturing process, from the original provider of materials provider to the end customer. Supply chain management is the supply and demand management of these materials, products and services within and across companies. This includes the oversight of products as they move from provider to manufacturer to wholesaler to retailer to consumer. Some companies use the term "logistics" interchangeably with "supply chain management," while others distinguish between the two terms. The distinction is that supply chain management does not just oversee the tracking of materials or products through shipment, but spans all movement and storage of raw materials, works-in-process, finished goods and inventory from the point of origin to the point of consumption. It involves the coordination of processes and activities with and across other business operations into a cohesive and high-performing business model.

Strategies

Storing large amounts of inventory is expensive and can expose a company to losses.

The ultimate goal of a successful supply chain management strategy is to insure that products are available when they are needed, thereby reducing the need to store large amounts of inventory. Supply chain management strategies must incorporate the distribution network configuration. Distribution networks consist of the number and location of suppliers, production facilities, distribution centers, warehouses and customers. These must be integrated with all the information systems that process the transfer of goods and materials, including forecasting, inventory and transportation.

Supply Chain Operational Flows

While there are only three primary operational flows, supply chain management can be extremely complex.

Supply chain management oversees three primary flows. Product flow involves the movement of goods and materials through the manufacturing process from suppliers through consumers. Information flow involves the transmitting of orders and the tracking of goods and products through delivery. Financial flow consists of payment schedules, credit terms, consignments and title ownership agreements.

Learning the Basics from APICS

APICS will assist you in determining which of their programs best suits your needs.

APICS’s Basics of Supply Chain Management is an online course that is designed to prepare you for the BSCM exam. APICS also offers several course options on supply chain management in preparation for certification. What APICS calls "Foundational Courses" are not for individuals seeking certification, but rather for those who want to develop skills and knowledge on supply chain and operations management. "Certification Review Courses" are designed for those seeking CSCP designations. Workshops are offered for continuing education. Continuing education is a requirement of maintaining CSCP certification, which must be renewed every five years. APICS also publishes several manuals that provide an overview of the curriculum, test specifications, test-taking advice, key terminology and sample questions with their answers.