We live in a globalized world where everyone is competing with everyone else. Organizations today are realizing the importance of an effective Supply Chain Management.
What then is Supply Chain Management? SCM as it is popularly referred to is all about planning and management of activities involved in sourcing and conversions. It also includes coordination and collaboration with channel patterns which can be suppliers, intermediaries, third party service provider and customers. There are different aspects and stages in supply chain management. Some of the keys aspects are mentioned below:
Raw Material Suppliers: A supplier plays a critical link in supply chain. Forming the right partnership with right terms and polices helps develop a good relationship with the suppliers that will prove beneficial to all the parties involved.
Manufacturer: After acquiring the right raw material, the organization has to make careful decision on the manufacturing of the product. The demand for the product, technologies required and other important decisions have to be carefully managed at this stage.
Distributors: The distributors could include wholesalers and retailers. They are one of the important links between the organization and customers.
Customers: They are the most important and also the end-link in the chain. An organization should identify their customers and make sure that the product they produce is what is required.
Beside the above, Logistics is also an important factor in the supply chain management. Logistics is to plan, execute and control various aspects of supply chain, from the point of origin to the point of consumption. For an organization to operate smoothly and profitable it is necessary for the supply chain to keep running.
However, redundancy is the enemy of efficiency. So how does one build a supply chain network that responds efficiently? The answer is the ‘people’ factor. “The flexibility of a supply chain and its ability to respond to different demand patterns is a direct result of the network design. However, the efficiency of a supply chain and the speed of response depends more on the people that run the supply chain.”
SOME OF THE KEY BENEFITS OF SUPPLY CHANGE MANAGEMENT
- Learn to design supply chains that improve supply chain profitability
- Use product design, strategic sourcing, and pricing to most efficiently match supply and demand
- Build and maximize supply chain coordination and collaboration
- Identify supply chain risks and design risk mitigation strategies
- Explore purchasing, production, and distribution strategies for a global environment
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