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".
9 Comments
You have a genuine capacity to compose a substance that is useful for us. You have shared an amazing post about Logistics. Much obliged to you for your endeavors in sharing such information with us.
ReplyDeleteinternational freight forwarders
very well explained in short!
ReplyDeletesupply chain management looks like a small process but really is not!
Thanks for sharing!
Supply Chain Software Development Services
Thank you for sharing this informative content to us.
ReplyDeletecustom erp software development
Hey Nice Blog!!! Thank you for sharing information. Wonderful blog & good post. Its really helpful for me, waiting for a more new post. Keep Blogging!!!
ReplyDeleteSupply Chain Management Software Development
Supply chain management is indeed the backbone of product delivery. I couldn't agree more with its significance. As I've been looking into expanding our operations, I'm curious about logistics services in the Philippines. If anyone has experience with or insights into the logistics landscape in the Philippines, please feel free to share. Knowledge-sharing like this is invaluable. Thanks for shedding light on these fundamental concepts!
ReplyDeleteInteresting post!
ReplyDeleteHey there! Great read on supply chain management. The article nicely breaks down the key components. I especially appreciate how it highlights the significance of supply chain analytics in enhancing decision-making processes. It's clear that staying ahead in the game involves not just managing the chain but also leveraging data insights for smarter strategies.
ReplyDeleteI found one successful example of this truth through this blog. I am going to use such information now.
ReplyDeleteDP-090T00: Implementing a Machine Learning Solution with Microsoft Azure Databricks
Very concise and fascinating.
ReplyDelete