In other words, a supply chain management system (SCM) is a global network that is used to deliver products.
The supply chain management process is from producer to wholesaler, wholesaler to retailer, and retailer to customer.
In supply chain management, only products are not supplied by chains Rather, any data (such as payment information, and product title dates) is also supplied with the product.
SCM systems that are developed using the Internet, extranet or specialized SCM software.
Objective of SCM
The main objectives of supply chain management relate to production monitoring and distribution of products, services, and shipments.With this, companies can have a very good and tight hold on internal inventions, production, distribution, internal manufacturing and sales.
To understand the scheme properly, we have to understand the following.
Supplier - A supplier that provides raw materials from which to manufacture the product.The supplier is completely different from the vendor, the supplier supplies raw material to a company while the vendor sells the product to customers.Manufacture - A producer is one who obtains raw material from supplies and then manufactures products from it.
Customer - The customer is the one who receives the manufactured product and it is the last link in the supply chain.
SCM - Process
SCM is a process used to ensure that their supply chain is cost-effective. A supply chain is a collection of steps a company takes to convert raw materials into the final product.
The five basic supply chain management components are discussed below.
A company formulates a strategy for all the resources required to design the product and provide services. Primarily focuses on the planning and development of a set of supply chain management matrices.
Develop - After planning, the next phase involves development or sourcing. In this phase, the focus is mainly on building a strong relationship with suppliers of raw materials required for production.
This involves not only identifying reliable suppliers.Rather the product includes the determination of different planning methods for shipping, delivery and payment.
Maker -The third stage in the supply chain management process is manufacturing or manufacturing. Of products demanded by customers.In this phase, the product is synchronized to design, product, test, pack and distribute.
The task of the supply chain manager here is to determine all the necessary activities. Products are manufactured .then this product is tested and packaged, then it is put on the market.
Delivered - The fourth stage is the delivery phase. Products are delivered to customers here. At the location assigned by the supplier. This phase is basically the logistics phase, where customer orders are accepted and delivery of goods is planned.The product is delivered to the end customer through various medium.
Return - The fourth stage is the delivery phase. Products are delivered to the customer here. At the location assigned by the supplier. This phase is basically a logistic phase, where customer orders are accepted and delivery of goods is planned. When the product is received by the customers, if it finds any defect in the product, then it returns it.
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Benefit of supply chain management
- In this, the data transfer is online so paperwork does not have to be done.
- This makes the whole seller and distributor satisfied because the product gets to the right person at the right time.
- There is very little chance of mistakes in it.
- It is very cheap & Quality is very good.
- In this, the delivery of the product speed is very fast.
- If an efficient scam maintains quality then it satisfies the customer.
