What is supply chain management?

Supply Chain management is the way of handling the whole production flow of goods and its services, beginning from the raw components until delivering the final output to the customers. For performing this tasks, companies forms network of suppliers (like the “links “in a chain) in order to transport the raw materials from the suppliers to the organizations who directly deals with the customers. Manufacturing starts with rapid prototyping services.

How does supply chain management work?

Planning & Executing: Properly planning and managing all the resources on company’s product and services to meet the customer’s requirement including- determining metrics to measure the established supply chain, effective and beneficial to the customers by meeting the company goals.

Sourcing & Analyzing: This starts from choosing the suppliers to deliver the goods and services required to create new product. Followed by establishing monitoring systems to manage and analyze the supplier relationships. Some of the key processes included are ordering, managing inventories, receiving and handling supplier payments and authorizing the same.

Manufacturing the Product: It’s required to organize the activities related to accepting raw materials, manufacturing the products, testing the quality of the products, packaging for shipping the products and scheduling for delivery.

Delivery and Logistics: Coordinating with customer’s order, schedule the products for delivery, dispatching the loads, preparing customer’s invoice and collecting payments.

Return Policies: Preparing return policies and making arrangements to take back the products with defects, misplaced or excess products.

Importance of Supply Chain Management

Supply chain management is essential as it helps to attain the business goals by improving the quality of the products, aids in building a strong consumer brand which will help to avoid or reduce the risk of recalls and proceedings.

It handles, the shipping services to provide the best customer service which help to avoid product shortages or over supply.

Overall, Supply chain management delivers various services and provides great benefits to the companies by improving the profit margins particularly for the companies dealing with international operations.