supply chain management Introduction

Introduction 

                                 Supply chain management is the process which is starts from raw materials and ends to end order fulfillment. In another way we can also said, flow of goods and services between business and locations or end users. 

The short form used for Supply Chain Management is - SCM. 

The departments included stores, purchase, productions, dispatch and logistics. 

 

                  The major components of supply chain managements are Planning, Sourcing, Manufacturing, Logistics and Returning.

1) Planning 

                               Planning means to plan how to all the utilized available resources to produce the product as per customers demand. It includes Raw Materials, Consumable Goods, Manpower, Machinery, Funds, IT Resources And Land.

2) Sourcing

                               Sourcing means suppliers of materials and services. Here select the suppliers to provide the goods and services, which is required to produce or manufactured the final products for sale. Establishment and manage of suppliers relationship is a key function of supply chain manager. Key processes includes - Placement of Purchase Orders, Material Receiving, Inventory Or Materials Management and Process of Supplier Payments. 

3) Manufacturing

                             Manufacturing is the process of production, with the utilization of available resources. It includes the activities required to accept Raw, Manufactured the product, Test of Quality, Package for shipping, And schedule for delivery. 

4) Dispatch And Logistics

                                In this activity, the supply chain manager coordinate with customers for Orders, Schedule deliveries, Dispatch Goods, Prepared Invoices to the customers, and Receive Payments.

5) Returning Back

                       In returning process, the supply chain manager, create a network for taking return back defective, excess and unwanted goods from customers.  

Advantages Of Supply Chain Management

                         A supply chain process start with the procuring of goods and resources from a supplier and then moves on to the manufacturer, wholesaler, retailer to finally end with the delivery of the consumer. Every step of the supply chain requires thorough monitoring and timely assessment to ensure productivity and maximized performance. Due to this an organization can take decision to either make product or break a business. below are the some advantages of supply chain management. 

1) Customer Retention And Experience

                            An effective supply chain management helps organizations establish a strong reputation in the market. It increases a system's effectiveness to respond to customer demands. This doesn't just attract new customers but also influences their loyalty to a brand. Businesses that prioritize customer service invest in effective supply chain management to ensure a seamless flow of goods and services.

 

2) Better Risk assessment And Management 

                             A good supply chain management allows the organizations to respond to customers effectively and efficiently. It is important to deploy predictive analysis tools for risk assessment. Responsible supply chain management also results in proactive action with respect to quality control. Businesses that do so are not just able to predict risk but also have corrective solutions in place to gap or cover the losses they might incur from disruptions. With the help of supply chain management, the organizations can easily manage the inventory level, And due to this the organizations can predict demand more accurately and avoid disruption of supply chain. 

 3) Improved Relationships

                           With the help of supply chain management, customer and vendor can build up a good and profitable relationship each other. A good relationship with vendors and customers helps enhance productivity and cut down costs. 

4) Cost Effectiveness

                           Supply chain management includes inventory management, which when effectively planned and executed can help cut down costs. To maximize the outcome of internal inventory, supply chain management has inventory management software that allows managers to benefit from an on-demand or lean inventory model. With the help of this, the supply chain managers can stock just enough supplies to meet demands and free up valuable warehouse spaces. This has helped to demands which have allowed them to shut down unproductive and unnecessary warehouses and save big bucks while doing so. 

5) Increased Productivity

                          Business can better predict demand and cater to it when their supply chain operations, including logistics, resources procurement and delivery, are strategically planned and executed. This improves a company's ability to adapt to disruptions, changing markets, and shifting industry trends. Manufacturing and shipping delays can be avoided if supply chain manager invest in making real time data available and automating supply chain processes. 

6) Inventory Management

                            Every supply chain company strives to reduce waste, which can be accomplished by enforcing overstocking controls. Overstocking results in the wreckage of unused materials, where as understocking results in the failure to fulfill the customers demand, resulting in a loss of business and revenue. The better supply chain management systems ensure that our organization have a well-organized warehouse and inventory control system in place to reduce holding costs on excess inventory while still allowing us to meet our clients needs. 

7) Shipping Optimization

                             Shipping optimization has become a top priority for supply chain executives as a result of rising costs. Recognizing the most efficient shipping methods for small packages, large bulk orders, and other shipping scenario helps companies deliver order to customers faster while keeping costs minimum. Not only do cost savings help the company's bottom line, but those savings can also be passed on to customers, resulting in higher levels o customer satisfaction overall. 

8) Reduced Costs

                                 One of the most significant benefits of effective supply chain management is reducing costs and increasing profits within our company. This is because supply chain management enables manufacturers to assess their current manufacturing processes, identify flaws and inefficiencies, and determine the best course of action to address these issues. Our production will run more smoothly as our process improve, allowing us to produce more goods for less money. 

Conclusion

                                   In above article we understand the what is mean by supply chain management, it's components, and its advantages. How the supply chain management process is very help to improve and growing  the organization and its systems.