Supply Chain Management
Getting the Supply Chain right is very important. Effective supply chain management can add value to the business and be a source of competitive advantage
Supply Chain Management
It is a process of series of activities and organizations that materials move through their journey from initial suppliers to final customer. Supply chain management encompasses the planning and management of all activities involved in sourcing and procurement, conversations and all logistics management activities. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries third party service providers and customers.
The key areas are:
Transportation and logistics
Suppliers
Warehouse
Visibility and forecasting
Retailers
Why we need effective Supply Chain Management?
- To ensure materials purchased are of sustainable quality, quantity, price and arrive, when specified. Business need to get all these factors right in order to maximize productivity.
- To ensure products are produced to a suitable quality, on time and dispatched, when specified.
- To ensure customer satisfaction
- Increasing globalization means that a greater degree of control is required – with business operating globally it is essential that you know what is happening in all key areas. Products may be made in one country, but sold in another country thousands of miles away. Increasing outsourcing means the supply chain needs to be stringently monitored and managed.
Benefits of effective supply chain management
- Minimized delays
- Enhanced collaboration with suppliers
- Reduced costs
- Great customer service
- Оpportunities to create value and achieve competitive advantage