Supply Chain Management

definition: Supply chain management is the management of goods and survices also known as SCM. It start right from the manufacturing of goods and ends till it reaches to the ulitimate customers or to the particular organisation.

It is very important for any organisation to ensure the smooth running of supply chain as it involves various complexities such as the delivery of product on time and at right place to the customers. It is process which is followed by step by step and each step is very important for proper supply chain management. 

It includes various factors which help in smooth running of supply chain which are as follows:

• Planning 

Planning help to reduce inefficency and wastage, which lead to economy in operations. Its main objective is to realise the business activities in the cheapest and best possible manner which help in reducing the frequency of failure.

• Information

Information play very important role in supply chain as without proper infomation manager cannot know what the consumer want and his needs, inventory records and product to be shipped etc. For every successful business proper information is required at right time for taking a managerial decision.

• Source

Products and services are manufactured from different source of raw material so proper managing source of supply can help in reducing the total cost of owing material and services

hence it is also an impotatnt level of decision making.

• Production

The ultimate goal is to make product or services more attractive to user so that demand is created attractive packing help in creating demand which include the details of the product with manufactury and expiry of the product , here testing of the product is very important before delivering to the consumer.

• Location

Location is crucial element in the supply chain which has great impact on logistics activities. Location should be such where raw material can easily be reach on time and after making the final product it should be delivered to the consumer with easy and smooth transportation without any demage to the product and it also play an important role in deciding the price of product.

• Return of goods

Return of goods help in development of any business organisation as it develops the faith and loyalty towards the products. Most supply chain stop measuring the success of their goods once the product is shipped and delivered to the consumer. In order to maintain a goodwill in the market for long run retun of goods is very important also for satisfaction of consumers.

References

Arihant ugc commerce., 2018.

christopher 2016 logistics and supply chain management.