Know About Supply Chain Management in Brief?

Supply chain management is defined as a step by step process involved in network of interconnected businesses for providing a product to the end customers by spanning a movement, from collection and storage of raw materials, work-in-process inventory to finished goods. Supply chain management is the integration of important business processes across the supply chain for satisfying the need of the customers by delivering a finished product. Managing a supply chain is called as Supply Chain Management.

To provide service to the customers five basic components must be followed.

Plan:
Developing a set of metrics that monitor the supply chain so that it is efficient, affordable and delivers high quality to the customers and satisfies the customers demand.

Source:
In order to create a product the company must choose suppliers that delivers goods and services. Supply chain managers must choose the process of payments, delivery and pricing with suppliers. SCM managers receives goods and services and transfers them to manufacturing facilities.

Make:
This process is included for manufacturing. The activities such as production, testing, packaging and preparation for delivery are done by SCM Managers.

Deliver:
The relationship between the customers and the company to accomplish the orders of the customers, develop network warehouses, invoicing system to receive payments.

Return:
This process involves in receiving the defective and excess products from the customers to the Supply Chain Planners and supporting the customers who have problem with delivered products.