Supply Chain Management

 


Supply chain management plays a crucial role within an organization. It could be identified as a fundamental business process in an organization. Supply chain operations are comprised with different systems, activities and processes that work together to shift the goods from suppliers to customers. Several parties such as; suppliers, warehouse, procurement, manufacturing, and distribution are involved in this process (Hand, 2022). The effectiveness of supply chain is essential for the organization’s success.

There are five basic components in supply chain management as; planning, sourcing, making, delivering and returning. Planning comprised with forecasting the demand and plan the requirement through data and analysis. After calculating the requirement, the next step is sourcing which commences from selecting the suppliers to purchase raw materials, components and services. Once the supplier selection is completed then order processing and receiving will be taken place. The next step is making which means the production. This component includes manufacturing, quality testing, packaging which are related to the production function. Once the production is completed, then the products will be delivered to the customers. This stage focuses on the logistics. As the final step, supply chain management has a network to receive the returns of any defective or unwanted products.


References

Hand, R. (2022, September 19). Understanding Supply Chain Operations. Retrieved from ShipBob: https://www.shipbob.com/blog/supply-chain-operations/


Author: D.T.Wickramage
Date   : 25 July 2023

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