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 product’s or service’s complete manufacturing cycle, from raw materials through delivery of the end product to the customer. business establishes 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:

Planning

supply chain management

Plan and manage the resources necessary to satisfy  company’s product or service demand. 
Determine metrics to assess if the supply chain is  efficient, effective, gives value to customers, and  satisfies corporate goals once it has been built.

Sourcing

supply chain management

Select vendors to offer the goods and services required to complete the project. Then, create procedures for  tracking and managing supplier relationships. Ordering, receiving, controlling inventory, and authorising supplier payments are all important procedures.

Manufacturing

supply chain management

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

supply chain managementCustomer orders are coordinated, delivery are  scheduled, loads are dispatched, customers are  invoiced, and payments are received.

Returning

supply chain management

 

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.

Any Query Please Contact Us :

Dollar
INR Indian rupee