The progress of any business is greatly dependent on the fact that the requirements of our customers, materials and their demands are completed at the right time, and for this SCM or Supply Chain Management should be made a strategic priority.
What is SCM or Supply Chain Management?
Supply Chain Management (SCM) refers to the continuous flow of goods and services, including the supply of raw materials, transportation of goods, storage, inventory, and then the final product from its source to its destination that is supplier. The whole process of reaching the consumer is involved.
In other words, a product has to go through a long process to reach its customer or consumer. It includes people, organizations, information and resources that every process that converts raw materials into final products. In this, everything is included from the provision of raw materials, production of the product, its packaging, shipping, warehousing and the final stop that is delivery of the product.
How does supply chain management work?
Supply chain management is the process of integrating demand and supply management. In which there are 5 steps:
1. Planning
2. Sourcing
3. Manufacturing
4. Delivering
5. Returning..
1. Planning:
Seeing the demand of customers for company products or services, the first step is to make a strategic plan to collect all the necessary resources.
2. Sourcing:
Once the strategic plan is in place, it is time to find the right suppliers who can provide raw materials, accessories and other services for the final product to produce the product as planned.
3. Manufacturing:
After the accumulation of raw materials required to make a product, the received goods are reviewed, and then the process of manufacturing begins. This stage also includes the process of manufacturing the product, quality testing, and finally packaging, which is managed by supply chain managers.
4. Delivering:
There is time after manufacturing and after the product is ready, that finished product is delivered to the customers through logistics, and the delivery of the product is ensured by the SCM process itself.
5. Returning:
The work of supply chain management is not only limited to the delivery of the product, but if there is any complaint in the delivered product, or if there is a defective product, then its returning is also handled by SCM.
Benefits of SCM:
- In SCM, there is a proper flow of product, material and information.
- Having the right flow leads to faster product delivery, which means delays can be avoided.
- Suppliers and manufacturers work together, which increases efficiency and effectiveness.
- Visibility is provided by supply chain management from the supply of the product to its delivery, due to which the chances of making a mistake are greatly reduced.
- All the departments work together, and keep in touch, due to which the visibility as well as the quality of the product can be controlled.
- Having supply chain analytics software allows business managers to assess the real-time status of the business, and be in touch with all the departments involved in the supply chain at the same time.
- Due to all these facilities, not only the choice and demand of the customer is known, but also the customer relationship is better.
Conclusion:
Now you know what is Supply Chain Management, what are its Benefits, and how does it work. If you also want to optimize your business' supply chain, then try our product - Dealsify today!