Selling keeps businesses alive, especially those of manufacturers and merchandisers. However, problems with the supply line may hinder not only the sale of goods but also the company’s operations. Through supply chain management, or SCM,firms involved in the making and selling of various products address these issues.
What It Is
SCM is the systematic handling of an organization’s vital resources. While it’s commonly associated with purchasing physical goods, its actual scope is from a product’s initial creation down to its final sale. The following stages of manufactured goods’ lifecycle are administered in this process:
- Planning:The future-oriented process of coordinating delivery from the supplier to the consumer
- Resourcing: Who and where the goods, services, and information will come from
- Manufacturing:The transformation of raw materials into market-ready goods
- Delivery: The flow of the arrival from the source to the organization and from there to the consumer
- Return System: How the organization will receive the product if ever the customer decides to return it
With the aid of supply management software, these stages are centralized and managed as a single fluid system.
The Supply Chain Manager’s Role
SCM’s main purpose is to successfully execute procurement and logistics.To fulfill this, supply chain managersgather information, allocate resources, cut costs, minimize shortages, manage risks, and ensure that endproductsare delivered to consumerspromptly. They accomplish these by:
- Overseeing internal and external inventories as well asthe production, distribution, and sales of theorganization
- Utilizing technology, like supply chain management software, and similar systems when communicating, gathering information, and facilitating tasks
- Developing and maintaining business relationships with suppliers
- Using their personal judgment, the theories of supply and demand, and analytics to make recommendations that improve productivity, quality, and efficiency of the organization’s operations
From the supplier to the consumer, and all the processes in between, businesses ensure the smooth flow of the production and sale of goods through SCM. Supply chain managers also minimize costs, enhance efficiency, and make recommendations to ultimately improve an organization, its systems, and its products. These responsibilitiescan all be fulfilled by maintaining healthy relationshipswith suppliers and utilizing tools like supply management software in making plans and decisions.If you’re a supply chain manager yourself, take advantage of this technology by contacting an SCM software provider today.