Definition: Supply chain management is the set of activities involved in manufacturing of a product to deliver that to customer.
1) Planning - A new project needs planning before it is commenced. Planning includes demand forecasting, SOP, production plan, logistics plan etc. The supply chain should be designed in such a way that it will be effective & efficient and the company can deliver quality product & services to it's customers.
2) Sourcing - Sourcing means procurement of raw materials & services from different vendors and maintain the relationship of company with vendors. Contracts will be signed in between company & it's vendors, after entering in to the contract company (Supply chain professionals) will monitor vendors activities which will decide whether company should go for long term business deal with vendors or not.
Sourcing includes all activities like Order processing, inventory management & vendor payment processing.
3) Making - Making plays a vital role in supply chain, in this step the product is manufactured. Once the product is manufactured it goes for quality check, after passing the quality test it sent to warehouse, in warehouse packing is done and then finally it gets ready for delivery.
4) Delivering - This is the step which is related to logistics. Once the product is packed and ready to dispatch from warehouse vehicles are placed as per the size & weight of goods, goods are loaded and finally the goods are delivered to the customer.
Delivery is scheduled as per the coordination with customer. Before dispatch it's ensured that Invoicing is done & payment is received as per agreed term.
5) Returning - Once goods are delivered at customer's place, there are chances that some products will appear as defected or wrong products may be delivered. In case of these instances company has to take back the goods to warehouse from customers place after completion of proper documentation. This is also called as "Reverse logistics".
0 Comments