Supply Chain Organizational Structure Outline & Definitions
Supply Chain Management Organization Chart Template
Learn MoreSupply Chain
Supply Chain Operations refers to the groups, functions and processes involved in efficiently moving products from production facilities to end users and consumers. Effective supply chain management can be essential in providing a company with a competitive advantage, especially in markets where there is high competition and/or low consumer switching costs.
Common Supply Chain job titles: Chief Operating Officer (COO), Chief Supply Chain Officer, EVP/SVP of Operations
Procurement
The Procurement function purchases products (raw materials, components, large machinery, software, etc.) from vendors to satisfy internal (inside the company) and external (customers) demand. After a need is identified, the Procurement Group is responsible for identifying and screening potential suppliers, selecting a supplier, negotiating terms of payment and arranging any logistical concerns (shipping, delivery, installation, training, etc.). Procurement employees are also tasked with monitoring the performance of company suppliers as it relates to the terms of the contract that governs the relationship with the vendor.
Common Procurement job titles: Logistics Specialist, Procurement Specialist, Vendor Relations Coordinator, Strategic Sourcing Analyst, Vendor Management Analyst
Materials Management
Materials Management groups handle all aspects of the flow of materials from supplier to production. The primary purpose of the group, in short, is to arrange for necessary materials to be at the right place at the right time. A major part of that equation is to work toward the lowest possible cost of transport when moving materials from place to place, typically from a supplier or warehouse to a manufacturing or production facility.
Common Materials Management job titles: Materials Management Clerk, Quality Control Inspector, Logistics Analyst, Receiving Specialist, Supply Technician
Master Data Management
The Master Data Management function is responsible for managing the structure, quality and use of data by both internal (in the company) and external users (clients, customers), often by means of database tools, GUI-based user interfaces and other internal data storage or management systems/architectures. The Master Data Management function relies heavily on the Information Technology (IT) Team and the company's existing technological infrastructure (servers, network connection, encryption algorithm) to store, export and analyze data collected from various sources, both internal and external.
Common Master Data Management job titles: Application Developer, Data Governance Specialist, Enterprise Architect, Data Engineer, Database Administrator
Manufacturing & Production
Manufacturing & Production (also known as just Manufacturing, Production or Assembly) refers to the processes and methods used to turn inputs - whether raw materials, partially finished goods or information (data) - into finished goods and/or services.
Common Manufacturing & Production job titles: Maintenance Technician, Manufacturing Technician, Manufacturing Engineer, Production Planner, Quality Control Inspector
Order Management
The Order Management function is responsible for collecting, validating and submitting (many times, entering it into an Order Management or ERP system) all of the information required to accurately fulfill a customer order. The Order Management function is a bridge between the Sales, Production and Distribution functions of a company. It mediates between the supply or push of production and the demand or pull of consumption. A successful customer order requires coordination between markting, sales, pricing and quotation, inventory tracking, production, packaging and shipping groups.
Common Order Management job titles: Order Entry Clerk, Order Fulfillment Specialist, Returns Specialist, Returns Clerk, Customer Service Representative
Distribution
The Distribution Group handles all aspects of the flow of outgoing products to customers. The primary purpose of the group is to arrange and compile necessary goods and/or materials before dispatching them to customer(s) on a timely basis. With a large consideration to transportation costs and timely shipments, the Distribution Group must also monitor the safety of the delivery and take proper precautions, if necessary (including storing goods properly during transportation and auditing packaging procedures).
Common Distribution job titles: Channel Manager, Delivery Driver, Order Fulfillment Associate, Logistics Coordinator, Distribution Quality Analyst