Supply Chain

Management Strategies

In business, supply chain management, which involves the movement and

storage of goods and services, from locations and companies, is composed of

the transportation and the location of goods as well as work-in-transit inventory

and end-to-point delivery of completed goods. Supply chain management is used

in almost every industry because in all companies there must be a continuous

flow of goods or services in and out of production, processing, packing, or

shipping. There must also be a way to measure and control the speed of this

flow.

Most companies have their own internal system for the supply chain management.

For some companies, there may be separate supply planning and delivery

planning divisions. In other cases, there may be a single department responsible

for overall supply planning and delivery. Regardless of how it's established,

there are three primary functions of supply chain management. These are

research, development, and the maintenance of good systems.

Research: Supply chain research is the process of trying to identify new

products and ideas that can improve supply chain management. It includes

studying how different types of products and services can interrelate and what

aspects of production are most important for reaching specific product goals.

This includes understanding the economics of various methods and the timing of their introduction.
It also involves studying what competitors are doing and what

kind of strategies they use to gain an edge. In addition to studying current

methods, supply chain research studies the effects of new innovations on the

market and how they might impact long-term processes. Finally, supply chain

research focuses on finding the most cost-effective methods of introducing new

products and services.

Development: The development of new or improved processes to better manage

the supply of a company's goods and services is part of development. This is

often referred to as "making hay while the sun shines." While most companies

develop several process improvements over time as a way to maintain their

competitive advantage, many develop a single plan or program. Often, this

single method of improvement serves to reduce costs, shorten cycle times, or

gain an advantage over rivals. Companies often face a decision between

improving one process at a time or adopting a comprehensive plan. Ultimately,

it's a trade-off of money versus the time and effort required to implement new

supply chain management techniques.

Maintenance: There are a number of activities that fall under the realm of

maintenance. These include scheduling, order processing, material

management, packaging and logistics, quality control, inventory control,

shipping and returns, and tracking and forecasting. All of these activities are

essential to the achievement of each company's objective, but only a few are

included within Supply Chain Management. While it is possible for each

company to manage these activities separately, a complete understanding is

needed to coordinate and integrate them as a whole. In addition to standard

processes like inventory control, there are also emerging fields such as

healthcare supply chain management and financial services to supply chain

management that requires coordination across multiple industries.

Metrics: Supply chain management focuses on both the creation of a high-

quality product and the delivery of that product into the hands of a customer.

Companies must monitor both productivity and expenses in order to create a

profitable return process. In addition to these activities, companies need to be

able to measure progress against key metrics such as revenue and cost. In the

case of supply chain management, there are two major approaches to measuring

productivity: the actual production of a product or the level of service provided

by a company. Both metrics are important in providing businesses with the

information they need to improve their ability to provide customers with a high-

quality product and service.

Scalability: It is common for companies to use supply chain management

solutions to build an organization's capacity and adapt to changing market

conditions and practices. This strategy is most often used when the supply of a

product is highly predictable, easy to forecast, and controlled. Additionally, this

type of solution can be used to build capacity in areas that are currently not

utilized or over capacity. For example, a manufacturer might use a supply chain

management system to contract with suppliers when their volume requirements

are lower than their current level of production. By contracting with suppliers

when their current production volume is at capacity, manufacturers are better

able to meet demand, expand their product line, and maintain a competitive

edge.

Outsourcing: The practice of contracting with third-party vendors to deliver

products and fulfill requirements is commonly referred to as outsourcing. While

some companies practice direct procurement, which involves obtaining supplies in-house from suppliers, other companies outsource their procurements to third-

party suppliers who may have extensive experience in fulfilling customers'

requirements. However, while this practice lowers costs for a company, it can

also lead to a loss of control and poor quality of products delivered. This is why

companies should consider carefully the pros and cons of supply chain

strategies before implementing them. We are also providing Digital Marketing Services.