Supply Chain Management is the action of supplying goods, purchasing, transportation, and physical distribution properly. The primary purpose of Supply Chain Management is to provide the goods and services in a proper manner. Companies around the world are in a struggle to represent their best to their customers, and they are finding new competitive sources. This is called supply chain management. The name “relationships” gives a big shelter to supply chain management. There are different types of relationships, such as strategic, tactical, transactional, internal, and so on. These relationships are more into members of the supply and chain community. The important part of any organization is supply chain management. If this factor works properly, an organization can achieve its goal successfully.
Supply chain management is an essential part of any business. It is the process that tells how a company functions and needs to work together and how to create a business relationship with customers and suppliers.
Role of Supply Chain Management CM explained further below:
- Sales and Marketing
- Finance
- Operations
- Human Resource
For the sake of sales and marketing, the organization will use sales promotion strategies such as product upgrades, gift cards, campaigns of marketing, and the focus being impulsive buying. Leading corporations inspire the company to invent some new marketing promotions.
The finance department has two areas focused on financial reporting and management accounting. These functions have different functions, but working together can enhance the best financial position for the company.
Operation Management is evolved to maintain the position of any multinational organization. The ten areas represent many strategic areas, such as:
- Goods and services, which are design and product material
- Management of Inventory
- Layout Design and Strategy
- Strategy of location
- Maintenance
- Process and Capacity Design
- Quality Management
- Supply Chain Management
Human resources take care of current and future demands and supplies. HR is always ready to work for future demands, and HR is training for skills needed in production.
Key drivers for achieving an Integrated Supply Chain Strategy in an Organization
Some key drivers will help an organization in achieving an integrated supply chain:
Facilities:
The most considerable responsibility of the facilities manager is they confirm the quality of the output facilities that have to be maintained by the staff. Proper quality reviews and checks by the operation should be done correctly.
Inventory:
Inventory management should follow the system of JIT, also known as Just in Time. This system delivers the order to their customers as soon as they get the order.
Information:
A progressive multinational corporation has hands-on information because their IT is powerful as it handles daily sales and orders from customers.
Sourcing:
A prolific firm will be strong in its good sourcing if it begins with direct and indirect suppliers because it has recognized the significant effect of a large, global supply chain. Therefore, the company will directly work with its suppliers.
Pricing:
Pricing of products and services should be in conjunction with “price building” and “psychological pricing.” That is why top-listed corporations hold the world’s most significant share of well-known brand equity.
Globalization:
It has become a sign of globalization because every organization wants to be the leading corporation in the world.
Technology:
To reduce the turnaround time and improve functionality, reputable firms work closely to automate their supply chain management systems channels. Whenever there is a reduction in the inventory level or hike in demand, the automated ERP of the organization generates the invoices. It automatically relays to both ends of the chain.
Customer’s expectation:
Prominent firms give preference to their customers because of their feedback. Their customers are their family, so they develop new ideas to facilitate them, such as a mystery shopper checking the customer’s experiences and feedback.
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