Supply chain management is the management of the flow of goods and services and includes all processes that transform raw materials into final products. It involves the active streamlining of a business’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.
A supply chain is comprised of all the businesses and individual contributors involved in creating a product, from raw materials to finished merchandise.Examples of supply chain activities include farming, refining, design, manufacturing, packaging, and transportation.
Over view of Supply Chain:
To understand supply chain management you must first understand what it takes to bring a product to market. For example, if you are building a laptop, you need to work with plastics suppliers, motherboard suppliers, microchip supplier, and packaging experts in order to have a product that can be sold on the market. Once you have your completed product, you will need to work with distributors and retailers who will be able to sell your product digitally or physically in stores. Supply chain management is the act of streamlining this whole process to increase efficiency. Expert supply chain managers will be able to create a formula of success that can repeated time and time again. When you have top-notch supply chain management, you will see your profits soar and your losses dwindle.
Modern Day Supply Chain Management:
Today, supply chain management, and the best practices that light the way for practitioners in the field, requires a nuanced understanding of the entire supply chain realm – from the different methodologies available to supplier performance to global regulations to economic concerns.
Specifically, the first supply chain analysis in 1985, the development of the “total cost of ownership” model in 1995 and the creation of the Supply Chain Council and the Council of Supply Chain Management Professionals in 1996 and 2004 respectively. The tie that binds each of these three examples is the holistic, all-encompassing take they place on supply chain operations.
This is very true when it comes to supply chain management. There are many different ways that supply chain management professionals have been implementing new technologies into their formulas for success. In our internet age, it has never been easier to communicate around the world. There are many supply chain management software programs that make it easier to connect businesses, suppliers, manufacturers, distributors, and retailers together. Having a visual representation of your supply chain process is now easier than ever with the use of supply chain management software. Mobile devices can now also be used in order to keep supply chain management professionals up to date on every step of the process. Responding to important messages or taking care of small problems before they spiral out of control can be simple with the aid of mobile supply chain management technology.
Supply chain management is a field that is changing quickly for the better with the use of new technologies. Understanding and utilizing proper supply chain management practices in your business can help you take your company to a whole new level. When you fully understand and utilize supply chain management procedures, you will be able to stay one step ahead of your competition.
Modern supply chain management is a holistic exercise. And that’s a good thing, regardless of how tough that may be to execute.
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