Supply Chain Management In A Nutshell
The 5 Key Stages In 5 Minutes
The saying is true: The customer is always RIGHT. The customer needs the RIGHT product, at the RIGHT place, at the RIGHT time. This is supply Supply Chain Management in a nutshell. Because you cannot get everything right, all that is left is the proper preparation with the right stages.
1. Planning
Plan how the business operates.
The first major decision is whether to manufacture your product or purchase from another supplier. Whether the business decides to manufacture or purchase the product from another supplier; a secondary decision is needed to be made of whether the product will be manufactured or purchased domestically or in a foreign market. Furthermore, planning also encompasses mapping out the network of manufacturing facilities and warehouses, determining the specific levels of production and relative logistics.
2. Source
Now the business needs to acquire the goods and services, at the best price, the correct number of products, at the right time. This stage of Supply Chain Management involves negotiation and scheduling of delivery.
3. Make
Efficiency is key here. This stage encompasses the packing and releasing of the product. The main focus is the flow of the product from the source to the customer. Rules of performance need to be managed.
4. Deliver
The delivery stage involves the business processing inquiries from customers, selecting distribution strategies, invoicing, receiving payments, management of import and export requirements, etc. Here, the business is concerned with mapping out an ‘order fulfillment’ process.
5. Return
The final stage deals with reverse logistics. What are the return conditions for your products? What is the process of replacing or refunding these products? Implemented correctly, return management can assist the business in identifying opportunities to reduce the flow of returned products.
The success of your business rests largely on the performance of your supply chain. Efficient supply chains reduce costs and can guarantee customer satisfaction.
