Supply Chain Management Fundamentals

Supply chain management is the organization of the entire production cycle of a product or service in order to improve quality, delivery, customer service and profitability. What is supply chain management? Supply chain management is the organization of the entire production cycle of a product or service, from raw materials to the delivery of the finished product to the consumer. The company creates a chain of suppliers (“links in the chain”) responsible for promoting the product from raw material suppliers to organizations that interact with users. How does supply chain management work? According to CIOs¹, traditional supply chain management systems have five main components: Plan and manage all the resources needed to meet the demand for a company's product or service. The existing supply chain needs to define metrics to help measure the effectiveness of the supply chain, its benefits to customers, and alignment with the company's goals. Select suppliers to provide the goods and services needed to create the product. Then, implement processes to monitor and  Supply Chain Management Fundamentals manage supplier relationships. Key processes include ordering, receiving, managing inventory, and processing vendor payments. Arrange the operations required for receiving raw materials, manufacturing a product, checking quality, packaging before shipment, and scheduling delivery. Coordinate customer orders, scheduling deliveries, shipping shipments, invoicing customers, and receiving payments. Establish a network or process for returning defective, surplus, or unclaimed products. Why is supply chain management important? Effective supply chain management systems minimize costs, waste and cycle times. The industry standard is a dynamic supply chain in which retailers automatically send restocking orders to manufacturers. You can fill retail shelves almost as quickly as goods are sold. This process can be further improved by analyzing data from supply chain partners to find new opportunities for optimization. According to the analysis outlined in the CIO.com article¹, there are three scenarios where good governance can add value to the supply chain cycle: Key Features of Effective Supply Chain Management The supply chain is the most visible aspect of a business to customers and consumers. The better and more efficient the supply chain management is, the better the company will be able to protect its reputation and long-term business sustainability. https://jiji.com.gh/accra-metropolitan/cds-and-dvds/supply-chain-management-fundamentals-1I83IynsCcDqksTQYf7gdpQ7.html