Supply chain management is a deals production flow of goods or services starting from raw materials components to delivering the final product to the consumer.it creates great advantages in the marketplace.
Customer demand and predictability
supply chain visibility
reduce risks & predictive capabilities
Increase quality
Better Logistics
More profitable
Planning:
To ensure the customer’s demands and supply chain manager can give needed wants to customers and plan properly. and proper planning can ensure the organization’s growth.
Source:
Select suppliers which provide the goods, raw materials, or services and create the product is a critical component of the supply chain. this has to create the contracts that govern the suppliers, and also managing existing relationships., supply chain managers must oversee the processes for ordering, receiving, managing inventory, and authorizing invoice payments for suppliers.
Manufacturing:
Arrange the activities to accept the raw materials, produce the product and test a shipping package for a quality purpose, and arrange delivery.
Delivery and logistics:
Coordinate customer orders, arrange better deliveries, dispatch loads, invoice customers and finally receiving payments.
Return:
Create a platform for the process to take back defective and excess or unwanted products.
supply chain management systems reduce cost, waste, and time in the production cycle, Using supply chain management systems organizations can create better plans to meet customer needed and demand for products and avoid a bullwhip effect then identifying potential problems. customer orders more products than the manufacturer can deliver, then the buyer can complain of poor service by data analysis, manufacturers may be able to correct shortage before the buyer is dissatisfied. It decreases the risk of recalls and lawsuits and it can make to build a strong consumer brand at the same time, over shipping controls and procedures can increase the company profits.
SCM usually tries to control the production, shipment, and distribution of a product centrally or to link them together with it. By optimizing the supply chain, companies can cut additional spending and deliver items to clients more rapidly. Internal inventories, internal production, distribution, sales, and inventories of companies selling stock are all under closer surveillance.
SCM is based on the conception that virtually every product reaching the market results from the efforts of several companies in the supply chain. Although there have been supplying chains for a long time, most companies recently recognized them as a significant addition to their activities.
The plan or strategies
The source ( Raw materials or services)
Production (focused on productivity)
Logistics & supply
The system of the return (for defective or unwanted products)
The manager of the supply chain tries to reduce shortages and lower costs. The job is not just logistics and stock purchases, recommendations on improved operational productivity, quality, and effectiveness.
Management of the supply chain is important because it can help achieve several business goals. For example, controlling production processes can improve the quality of the product, reduce the risk of recalls and lawsuits and assist in building a strong consumer brand. Checks on shipping procedures can simultaneously improve customer service by preventing costly shortages or excess stock provision. Overall, supply chain management provides companies with several opportunities to enhance their profit margins and is particularly important for companies with large and international businesses.