Supply chain management (SCM) involves the working out of a plan that covers every stage of sourcing from materials sourcing to packaging, shipping and inventory management. A reliable and efficient organization will pay attention to all areas of planning and act as a long-term supplier. A sensitive business will concentrate on this area and will focus just on the point where the business makes money.
In addition to being a supplier, the business must also be able to buy goods and then sell it to an end customer. This can be direct, ecommerce, retail or wholesale. In any case, goods will need transportation and storage to ensure quality, safety and pricing. However, transportation will need to be managed. This will include trucks, trains, ships or airplanes. Product transport may occur using a truck, train, plane or ship or by ship. These avenues will be the most diverse ways that goods are transported and will be from most to least expensive.
Matching the demand to the supply is also an important part of SCM. Business must be able to determine the actual rise of demand followed by the actual fall in volume. A business will create either a high demand for goods or a low demand for goods after this period. The volume of supply will determine this. This will ultimately determine how expensive it is to obtain the goods.
Projects will involve plans, actions and timelines. They are necessary to achieve benchmarks of success and also to create a road map for the business to follow to successfully reach the goals. Most business begin with a print of a diagram of the supply chain management system for the business. The diagram is not static. It is constantly in progress and with the appropriate levels of management on each key area. Each area involves tasks that must be done. Activities will be assigned to employees and this group will be responsible for completing the tasks and this group will be responsible for completing the major tasks.
While the CEO is still weighing which ideas to pursue, the business has already begun this business strategy. The entire business has been assessed and ranked using the phases that must be followed for all key areas. These phases have also been identified to of the job that is most important to completing the project successfully. The project has been approved and the resources have been allocated. Each area of the business has a deadline to be reached by – not to exceed.
Since the product has been approved, in the supply chain management system, the product is being developed and refined. Attempts are being made to find resources to complete the necessary tasks. Production has begun and this doesn’t include drawings. Receiving has been approved, by design, by the company. Shipping has been negotiated and the company must converse with the client. This is when the company initiates “watch marine”, the project management of monitoring the ship or plane that the goods are on.
The monitoring is going on, but somehow the product that needs to be delivered is not available. This is a problem. The supply chain manager must get creative to find the needed resources. In this case, you will consult with your logistics team to identify independent business firms that may be of help. This problem can be solved when the demand changes and the product needs to be delivered to a client. The problem is that the company makes mistakes when communicating with the client. It is essential that the company (supplier) is well-informed about what is being done, when is the next meeting held, what will be needed, who will be there, who will be absent, who will be shipping and who will be able to help and repair issues.
Until, the next deadlines – this is what the company will have to face during the supply chain management process. This could also be a very stressful time for the business if the opportunity to correct issues arise. But it can also be a very productive time.
After the project has been finished, live statistics will have to be analyzed and the summary will be presented to the project manager. The visual organization of which key area have been met and what things still have to be done will be laid out. The report will indicate what is needed and it is time to look forward to the next project. Win on this and many projects will be handled productively and efficiently. The success of the supply chain management approach to business will be seen.
