What is supply chain management?
Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. This refers to the management of a product’s or service’s complete manufacturing cycle, from raw materials through delivery of the end product to the customer. A business establishes a network of suppliers (or “links in the chain”) to transport the product from raw material suppliers to organisations that interact directly with customers.
Here are five components of traditional supply chain management systems:
Organize the steps necessary to take raw materials, make the product, test it for quality, package it for shipping, and schedule delivery.
Delivery and Logistics
Create a Process or network for returning faulty, excess, or unwanted items.
Why is supply chain management important?
In the production cycle, effective supply chain management solutions reduce cost, waste, and time. A just-in-time supply chain, in which retail sales instantly indicate replenishment requests to manufacturers, has become the industry norm. After that, retail shelves may be replenished practically as soon as products are sold.
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