Chain Supply Management
Common stages in the Supply Chain
Planning (Manufacturing or buying in, Made to Stock, Made to Order, Configured to Order, Engineered to Order, Order Levels) Source (selecting supplier(s) or procurement of raw materials, components) Make (scheduling of production, testing, packing) Deliver (distribution strategies, storage, transport options, time constraints, Import/Export requirements) Return (managing returns and their condition, restocking, replacements, refunds)
Supply chain management (SCM) is the management of the flow of goods and services from the point of origin to the point of consumption. Effective SCM can provide numerous benefits for businesses, including:
Improved efficiency: By streamlining supply chain processes, businesses can reduce waste, minimize inventory levels, and improve overall efficiency.
Increased profitability: Effective SCM can help businesses reduce costs and increase revenues by improving supply chain efficiency and minimizing supply chain disruptions.
Better customer service: By optimizing supply chain processes, businesses can improve delivery times, product quality, and overall customer satisfaction.
Enhanced supplier relationships: By working closely with suppliers and developing strong partnerships, businesses can improve communication, reduce costs, and enhance supply chain efficiency.
Improved risk management: By having a robust SCM system in place, businesses can better manage supply chain risks such as supply chain disruptions, product quality issues, and supplier failures.
Improved visibility: Effective SCM can provide businesses with greater visibility into their supply chains, allowing them to make more informed decisions and respond quickly to changes in demand or unexpected events.
Overall, effective supply chain management can provide significant benefits for businesses, including improved efficiency, increased profitability, better customer service, enhanced supplier relationships, improved risk management, and improved visibility. By investing in SCM, businesses can improve their competitiveness, reduce costs, and enhance their overall performance.