Supply Chain Management is the management of the movement of products and services from the point of origin to the point of consumption. Some of the most far-reaching systems ever developed manufacture and distribute the items that underpin modern societies. It also includes the transportation and storage of raw materials used in work-in-progress, inventories, and fully furnished goods. Everything from the food and packaged commodities that fill supermarket shelves to the processors that power our smartphones and the raw materials for the new buildings is delivered via a global network of supply chains.
Overview:
Supply chain management’s major goal is to keep track of and connect the production, distribution, and shipment of goods and services. Distributor management system fmcg companies in streamlining processes and staying ahead of the competition. Companies having a good and tight grip over internal inventory, production, distribution, internal productions, and sales can do this. It’s now a necessary aspect of supplying high-quality items at competitive pricing for modern enterprises.
Supply chain management is a wide term that refers to all of the processes, systems, and strategies involved in the creation and distribution of a product. Supply chain management system is now a subject taught at business colleges and universities. Demand planning, inventory management, logistics, procurement, and supplier management are just a few of its numerous components. Large organizations can have entire sections dedicated to supplying chain management and optimization. Supply chain management began as a laborious paper procedure more than a century ago when early twentieth-century industrialists needed to optimize manufacturing. It is now intimately linked to 21st-century technology. Small and medium businesses, on the other hand, often lack the expertise and resources needed to improve their supply chain performance. However, as the pandemic has shown, technology is just as prone to create supply chain failure as it is to avoid it without global integration and reliable data.
Final Lines:
In short, Supply chain management entails overseeing all of a supply chain’s businesses and individual workflows. SCM and operations management (OM) are inextricably linked. OM focuses on coordinating and managing internal activities, whether they are creating and manufacturing items or providing services. While employing a supply chain alone may appear to be sufficient, supply chain management is what maintains it structured and efficient. Simply put, both SCM and OM are responsible for the same product at different phases of its lifespan. Both experts’ primary goal is to reduce costs and increase manufacturing efficiency without sacrificing quality. It lowers manufacturing and purchasing costs, reduces the likelihood of inventory shortages, and improves customer service. The latter talks with stakeholders and executes policies in order to improve manufacturing and get things running smoothly within the organisation. If you believe your supply chain could be better, supply chain management could be the answer.
Comments
Post a Comment