Supply chain management is a set of solutions which manages and check the flow of goods, finances, and data from the origin to the final destination. It includes all the activities which involve the movement of the right product at the right time and into the right consumer’s hands. Supply chain management focuses on planning, forecasting, purchasing, distribution, storage, customer service, sales, transportation, shipping, etc.
How does Supply Chain Management work?
The basic working structure of a supply chain will involve a company, customers of the company and its suppliers.
The chain is raw material producer, distributor, retail customer, retailer, and manufacturer.
The four main elements of supply chain management are integration, operations, purchasing, and distribution.
Benefits of Supply Chain Management
There are many benefits of supply chain management which are visibility, lower operational costs, ease of use, security, agility, and improved collaboration.
There are two different types of Supply Chain Management:
1) Supply chain execution system
2) Supply chain planning system
With the help of supply chain management software, the manager can perform the following duties:
1) Create supply plans to ensure availability of the raw material
2) Evaluate risks to the suppliers and supply chain
3) Manage activities which includes warehousing, purchasing, and inventory control.
4) Forecast demand for the products
5) Analyze inventories for determining an increase in inventory turns
6) Manage supply chain staff
7) Coordinate supply chain with other functional areas
8) Evaluate suppliers for determining the effectiveness of supplier strategies
The types of flow in supply chain management are:
1) The product flow: The product flow involves goods movement from the supplier to the customer. The flow also
concerns customer service needs and customer returns.
2) The information flow: It involves transmitting orders and the updation of delivery status.
3) The financial flow: It involves payment schedules, credit terms, and consignment
The top five SCM providers are:
3) JDA Software
4) Infor Global Solutions
5) Manhattan Associates