Bind Those Chains – Supply Chain Management

Today, organizations have realized that a dependency on efficient supply chains

, or rather networks have to be relied on, in order to compete in the world market and economy. Mere adoption of these supply chains isn't enough; it takes a management to keep them under check, under control. So here enters the supply chain management, most popularly recognized as SCM.

So, what is this?

Basically, Supply chain management is managing a network of interlinked businesses that are involved in the final provision of goods and services required by the consumers. In simple words, it spans all the movement as well as the storage of raw materials, the under-production inventory and the finished products from the origin step to the final consumption point.

Now, one would surely wonder why this simple process, that has been there since the industry was formed, so important today? Well actually, with the organization strategies diverting towards core competencies and flexibility, the ownership on certain stages of production such as raw material resources and distribution channels reduce. They prefer to get these process outsourced from people who can perform better and turn out cost effective at the same time. Ultimately, while the management control of routine logistics operations is reducing, there are many organizations now involved to satisfy consumers' demands. Hence, the lessened control and increased partners have led to the formation of supply chain management theories.

Then why the supply chain solutions? Where are the problems?

In accordance to the reason for creating this concept of management, the sole purpose of it is to enhance trust and collaboration between the supply chain managers. This in turn leads to the improvement of the inventory visibility as well as its velocity. So if this is true, why do problems crop up?

It is crucial to note that any new operation has to encounter few upheavals, and so does this one. It is quite obvious that when many heads work together for the same goal, many thoughts are infused and hence the turmoil. Thanks to the supply chain solutions available in the market that these problems can be catered to with poise. Still, a couple of issues that the management ought to look into are the distribution network configuration (dealing with the quantity, locations and missions of various suppliers), distribution strategies, inventory management and the cash flow.

Hence, the major functions of the supply chain management revolve around the strategic, tactical and operational facets. With these broad categories, on penetrating deeper into the supply chain processes, one would find that the major steps include customer relationship & service management, demand management, order fulfillment, manufacturing flow management, supplier relationship management, product development & commercialization and also the returns management.

Now all this isn't as easy as it sounds. It takes excellent and well designed supply chain solutions to handle these with expertise and dignity.

Bind Those Chains Supply Chain Management

By: gregg

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