Tired of inefficient system – try NEWTON SCM SolutionsSupply Chain Management is a crucial element of general business management. To make sure profits, repeated sales, customer satisfaction, and future growth an organization there is need to have a proficient supply chain management for any kind of sales. Therefore, goodwill building and corporate profitability are critically dependent on it.
As a discipline, supply chain management is acquiring regard and more companies are realizing the importance of managing the network of facilities and distribution options.
The efficient Supply Chain management includes-
1.Procurement of raw materials
2.Transformation of these raw materials into finished products
3.Distribution of finished products to the customers
One can find the supply chain in every company no matter it is manufacturing products or offering services. on the other hand, its complexity varies significantly from business to business. For example, a company that offers services may have a less complex supply chain than that of a company that manufactures products.
Its fundamental use is to make sure that the products are produced and delivered in a timely, efficient and lucrative manner.
The five primary elements that collectively include the Supply Chain Management are-
Each of the above elements is decisive for a business to flourish.
The planning stage- it involves forming up of strategic plans for the organization. These plans or decisions are very decisive for an organization as they permit to craft a strategy for managing their production flow process.
The sourcing- It is an extension of the planning process. It also plays an important part in deciding the profits an organization is going to make. in this phase, the organization decides from where to acquire the raw materials needed for the production. The company has to choose a supplier who provides it best quality raw material at the lower possible prices, so as to make the most of its profits and offer excellently finished products to the consumers. Efficient management of the inventory of the goods and services that an organization receives from its suppliers is another very noteworthy task involved in supply chain management.
Production phase - This is the most significant step in a supply chain. It comprises all the activities and decisions compulsory for production, packaging, testing, and preparation for delivery.
Delivery phase - It is the next phase. In this phase, a company set delivery mechanism.
Accepting returns – It is the last phase of Supply Chain Management since customers are not always satisfied with the products, consequently, every company must have a network to receive the returned goods to make its customers satisfied.
Supply chain management is utilized mainly to realize the goals of an organization. These goals can be both short-term as well as long-term. This term significantly influences the type of decisions taken for supply chain management.
Supply Chain Management mainly includes the processes by which raw materials are obtained and utilized to manufacture the end products. It also encompasses the processes that involve the ability to process returned goods and the delivery of the finished goods. therefore, the supply chain management mainly covers the issues connected to better servicing.