Steps to Achieve a Successful Supply Chain Management Process
Every supply chain management process involves designing, planning, executing, controlling, and monitoring of supply chain activities. It helps in building a competitive infrastructure, creating net value, supporting worldwide logistics, bringing demand and supply in synchronization, and measuring performance globally. The supply chain manufacturing process is said to the unsung hero of the manufacturing sector and it is the foundation […]READ MORE >>
Every supply chain management process involves designing, planning, executing, controlling, and monitoring of supply chain activities. It helps in building a competitive infrastructure, creating net value, supporting worldwide logistics, bringing demand and supply in synchronization, and measuring performance globally. The supply chain manufacturing process is said to the unsung hero of the manufacturing sector and it is the foundation that acts a support system for every manufacturing business.
Importance of Supply Chain Management
Every supply chain management process plays a crucial role in running key operations for almost every organization. If the supply chains management process doesn’t run smoothly, the supply chain system can halt at the floor and ultimately lead to a loss in production. The importance of every supply chain management process lies in the fact that it helps in boosting customer service, reducing operational costs, and improving the financial position of an organization. The supply chain management process also has societal roles like ensuring human survival through healthcare and energy supply chain, improving quality of life, and protecting cultural freedom and development. But then, the most important question arises, which is, how can we achieve a successful supply chain management process? Here are the five most essential steps for effective supply chain management.
Steps for a Successful Supply Chain Management Process
The first step in every supply chain management process is planning. To come up with the best possible way to fulfill the end requirement is the first strategic aim of the process. There is a list of key components like warehouse designing, plant location and its size, delivery models and many more which need to be identified. Additionally, transportation cost modeling and warehouse efficiency models are the other components that need to be developed and without which the supply chain management process would be incomplete.
To find out the most reliable raw material suppliers and establish a smooth production process are the two critical steps in every supply chain management process. Companies should assess supplier performance if they are working with a network of suppliers or having inventory management or asset management problems.
This step is a crucial one as a perceivable shape is given to existing plans through manufactured products that are at the final stage of execution. Results are in a way quantified to achieve maximum efficiency.
This step of the supply chain management process is the core responsibility of the managers as they have to ensure the correct delivery of product or services at the right quantity, the right time, and the right location through suitable carriers. Modern IT tools are required at this stage to keep a track of delivery channels like warehouse networks, inventory, invoice, and payment receipts.
This is the last step of any supply chain process and it not only involves carrying out quality checks on the returned products or services, but also the management of the inventory. Management of returns should be a measure to improve the value and attain maximum efficiency.