Supply chain management (SCM), could be explained as a management of the flow, of the goods and the services, it also involve the storage of the raw material and the inventory, however, the work-in-process of the inventory, to the finish good and until it reaches to the point of consumption, everything comes under the process of the supply chain. In today’s world and the business supply chain is considered important because no business processes cannot be done, without the supply chain management. Every task of the supply chain is related to the management process.
Importance of Supply Chain in Business Processes
In the supply chain process, there is the designing, execution, planning, monitoring and controlling of the goods and services, the supply chain has its own value, importance in the process, have own mission, objectives and strategies, it is the field, which emphasis on maintain the competitive environment, so that companies could make the best logistics. There is the measurement of the performance that how company is maintain it target globally, the assessment is done based on the supply and demand of the product or services. Supply chain is the system, which has the integrated approach, however, relate to the management of the channel and logistics.
In run the business process smoothly, and in order to ration the customer supply chain is considering the industrial engineering so the operation could be managed, there are the companies across the world that are focusing on maintaining the supply chain process, so the competitive environment can be followed. However, many of the company in the market are following the principles of supply chain, but the competition of supply chain still exists within the industries, because every company focus on establishing the best supply chain management. Moreover, for the benefits, the focus of the companies is on supply chain, to bring the product in the market and then to satisfy the customers, all the physical distribution through transportation, of the goods, is related to this field. The supply chain of the company has the links with the partner, through which the amount of goods are measured, that what customers needed, or what needed to supply (Svensson, 2009).
Supply chain has the wide range, of the functional areas; all inbound and outbound management related activities are included. Scheduling, forecasting, procurement and sourcing are all comes under the supply chain umbrella, there is management and forecasting that how much number of products will be supplied, all activities are monitored, we can say the activities are related to the moving of the goods. The main goal of the supply chain is to increase market share of the company (Christopher, 2016).
Supply Chain Management
The supply chain management is a process to carry the products to the customers in an effective manner. The supply chain management enables the efficient and pertinent flow of products, which enhances the rapidness and profitability of an organization.
This is a fact that the management of supply can lead the company to contain some effective strategic considerations regarding the raw material and transportation of products. This is necessary to have a precise flow of products to reach the market at the time.
Thus, the role of the supply chain management contains the significance in an organization, which can also lead the company towards the further expansion process in the market. To depict the rapidness in the supply chain process, there are different aspects, which have to be considered by the management, For Instance, these aspects are planning, developing, making, delivering and returning process (Hugos, 2011).
Relative to the planning process, this is vital for the management to make the strategies to lug the pertinent products to the customers in the market according to the needs and modern trends. The integration of the planning process with the relevancy is necessary, especially in the competitive market. The main aim of the supply chain management is to be more profitable. The inclusion of all stakeholders in this planning process along with both, internal and external considerations is effective to make the difference.
The next stage is development, as the management can choose the suppers and sustain the long-term relations with the suppliers. The sure of the outsourcing has been in the limelight with the passage of the time. In addition, having effective and active suppliers from other organizations can reduce the cost of the process for the company. The consideration of this stage is imperative for both, the company and administration to depict the lucrative team of suppliers and contain the business sustainability.
Third, the making process depicts the production process along with developments, packaging, and delivery schedules. This is the pre-product planning, which is good for the management to reduce the cost and responds the market immediately. The management may test the product, measure the different quality levels and integrate these aspects with the supply chain process requirements. This is all about the unsurpassed possible integration, which is good for the company to sustain its competitive position in the competitive market.
Furthermore, the delivery plan is related to the means of transportation or logistics. The global supply chain process contains the surge of third party logistics to be more cost effective and lucrative. Thus, the management of the company may plan the adequate transportation process. The recommended logistics contemplation is fastest transportation saving approach for the company. This should be included in the delivery plan to pace the product at the accurate place and time according to the needs of the customers.
The last stage of the supply chain management or process is the return. This is necessary to demonstrate the rapid process in case of any return of the product from the customers. The company can also consider the intense and valuable feedback from the customers and drive the insights regarding the return.
Besides, after the planning process, there is a need for tactical, strategic and operational decisions to make the process precise. For Instance, in the operational process, the management can consider the new technology to enhance the speed of the process. For tactical, the emphasis can be on alliances, dealings, and purchasing strategy. For strategic consideration, the management can gather all suppliers along with different stakeholders and come up with effective decisions for the sustainability of the supply chain process.
Supply Chain Create Competitive Environment
In the supply chain, the business analysis is done timely, so that the company could remain competitive, companies must seek the supply chain management for the efficiency in the business and the distribution network design (Khan & Zsidisin, 2012). There is the flow of the material; the main purpose is to improve the long-term planning; the companies who want to improve, there is the customer satisfaction involved in the process, to make sure that the real product is given to the customers. However, there are fake products in the market, so the supply chain of the company mange to give the real products in the market, so that the consumers can be there in relationship with the company, for the long life.
There is the efficiency system, related to the supply chain, so that work and supply of the products can be done effectively, there is the customers relationship management, the manufacturing flow management and the returns management, all the process or the system are under the supply chain process. In the physical distribution, there is the focus on the marketing, the marketing channel includes the marketing channel, services are the integral part of the marketing, so that are being focused. The best supply chain also deals with the development of the production technology, it is necessary for the best supply chain to manage the target cost and the target customers effectively (Ross, 2013).
The supply chain management is more focused on the evaluation of the performance or the performance management, in order to know about the profit and loss of the company, for the profitability and large market share; the strong relationship is created with the experts. Firms are engaging with each other, to improve the quality of the supply chain function. Through taking the customers reviews and the customer’s perceptions, the best practices are focused. Performance management is important for the competitive advantages, to improve the quality of the supply chain and to give the best services to the clients, there is need to adapt the information system so that the process can be speedily done (Hugos, 2011).
In the management process, different analyses are done, to know about the compatibility of the company and to know that how the company is performing. There is the assessment of the balance sheet, in this process, to know about the company has followed expected cost, the inventory is also focused, and supplier and buyer relationship is the most important consideration at this level.
Sustainability in the Supply Chain
In the supply chain the suitability and social responsibility is also focused, so that there could be the steps for the development, however, the economic, social and the environmental aspects are concerned. The companies are doing efforts to so the betterment in the economy, as benefits to the supply chain is given by the government, so that the products and services can be easily delivered from the one place to another. Companies know that their supply chain through the road, creating the pollution and affecting the green house, therefore, the companies are doing efforts for the green supply chain, the collaboration of the companies are highlighted, as Wal-Mart is taking steps for the global sustainability so that the motivation to build the infrastructure can be there. However the other retail companies are also focused on maintain and contributing for the green supply chain, because retail companies has to do transfer of the products on the daily basis (Cetinkaya, Cuthbertson, Ewer, Klaas-Wissing, Piotrowicz, & Tyssen, 2011).
For the progress, in the business process, it is needed to consider the supply chain management process, so that the companies and their clients can be benefited. If the companies undertake the supply chain processes and the strategies efficiently, then the benefits can be there in the market and the customers can be retained, as the best services can be given to them. All the companies need to do efforts for the sustainability so the betterments for the supply chain management can be there.
- Cetinkaya, B., Cuthbertson, R., Ewer, G., Klaas-Wissing, T., Piotrowicz, W., & Tyssen, C. (2011). Sustainable Supply Chain Management: Practical Ideas for Moving Towards Best Practice. Springer Science & Business Media.
- Christopher, M. (2016). Logistics & Supply Chain Management. Pearson UK.
- Hugos, M. H. (2011). Essentials of Supply Chain Management. John Wiley & Sons.
- Khan, O., & Zsidisin, G. A. (2012). Handbook for Supply Chain Risk Management: Case Studies, Effective Practices, and Emerging Trends. J. Ross Publishing.
- Ross, D. F. (2013). Competing Through Supply Chain Management: Creating Market-Winning Strategies Through Supply Chain Partnerships. Springer Science & Business Media.
- Svensson, G. (2009). The transparency of SCM ethics: conceptual framework and empirical illustrations. An International Journal , 14 (4), 259 – 269.