What Is Supply Chain Management
Planning, developing, making, delivering, and returning are the five basic steps that are dealt in supply chain management. These steps can be discussed hereunder to understand them.
- Planning, being the first step of supply chain management, should be discussed at first as a developing a strategy to think out as ow certain product can satisfy the needs of the consumers including the planning for the chain of supplies for producing the required product.
- Developing, being the next step of supply chain management, relates the process to develop a strong and strategical bonding with the raw material suppliers that are required by the company to supply the finished goods to the customers. It also relates company to the trading process of finished goods such as packaging, shipping, delivery and collection of payments, alongwith the suppliers of raw materials.
- Making, the third step, relates the company with the manufacturing process of the finished goods from the raw materials supplied by the suppliers. It also related company with testing, packaging, and scheduling the goods for delivery beside manufacturing them. The orders are received from the customers and accordingly supplies are made to satisfy them.
- Delivery, the forth step of supply chain management, is directly linked with the making of goods as they are delivered to the customers after going through the process of testing, finishing and packing of the finished goods. The arrangement of transportation is the essential part of delivering the goods as it can be rendered only through it.
- The final step, returning, of the supply chain management implies with the returning of the defective goods, manufactured by the company, by the customers. The company may also have to answer the queries by the customers in this regards.
The concept of supply chain management can also be understood by another model which divides the whole process into three major parts of the activities such as strategic, tactical, and operational, in a company. It can be explained as under:
- Strategic activities of the company can relate it to creating bonds between the company and its suppliers as well as customers alongwith integrated technology of informations among the chain of supply.
- Tactical activities are linked with the studying the market conditions and making strategic decisions relating to the manufacturing and delivering the finished goods to the customers.
- Operational activities in the supply chain management relates to the management of making schedules of productions and day to day operations of the supply chain of the company.
But even after taking all the precautions in the supply chain management there may appear certain problems which are usually tackled through planning and avoiding the problematic factors within the chain of supply. Thus, supply chain management is the process that can regulate the working of a company to its perfection.