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What is Supply Chain Management?

This is the study of how chains of supply operate and how they affect finance. Supply networks can be classified into several subcategories, including logistics and supply chain management. Supply networks can be classified into an infinite number of subcategories. The supply chain’s core premise is to design logistic procedures in such a way that they give the business with a competitive advantage. Supply chain management is a relatively young and emerging concept in India. Numerous businesses across industries are embracing this approach in order to gain a better knowledge of how supply chains operate.

Supply chain management is a broad industry concept that strives to increase the efficiency and effectiveness of all business activities by guaranteeing supply chain consistency, hence enhancing the organization’s productivity. Supply chain management has become a widely accepted strategy for assisting businesses in increasing profitability, managing risks, and reducing costs through increased efficiency at every stage of the supply chain.

Typically, businesses view supply chain management as a way to improve their bottom line. When clients learn that a product is made from recycled and recyclable materials, they become more interested in the product, which results in increased sales. A more efficient supply chain will help you save money and remain competitive. This manner, a firm can boost its competitiveness while also optimizing its operations.

Supply chain management is a multifaceted process that strives to enhance resource utilization and cost reduction throughout the supply chain. It is defined as “a sequence of actions aimed to ensure that raw materials and produced goods flow efficiently and with the least amount of expense and loss along the supply chain.” Coordination of business activities involves  the process of directing the movement of products(good and services) from their point of origin to their final destination with the customer.

 Types of Supply Chain Management

  1. Manufacturing and Distribution Management: This category include suppliers, production, and product delivery to the market.
  2. Material Management: This term refers to the process of overseeing the acquisition of raw materials, which includes warehousing, inventory management, and eventually the delivery of raw materials.
  3. Inventory Management: This entails keeping track of the finished goods stock levels at various outlets.
  4. Order Management: This is the system that keeps track of incoming orders and their status inside the decision-making process of the organization.
  5. Demand and supply management—It examines demand trends, supply changes, and inventory management.
  6. Cash Management: This is the system that keeps track of cash flow and collects data about it.
  7. Supply Chain Risk Management—This process encompasses the management of all hazards associated with the commodities, services, and people involved in the process. Risk management in the supply chain is often referred to as supply chain security or logistic risk management.

Importance of Supply Chain Management

  1. An efficient supply chain saves significant amounts of money. It reduces shipping and inventory costs.
  2. An effective material movement throughout the organization ensures that orders are produced swiftly and efficiently, resulting in improved customer service and satisfaction.
  3. Having a procedure that delivers on time not only ensures customer satisfaction, but also enables effective monitoring and management of inventory levels.
  4. Using best practices in the supply chain will cut costs and boost efficiency, resulting in increased profitability for the business.
  5. An efficient supply chain can be used in marketing campaigns to demonstrate the company’s values and quality standards to clients prior to making a purchase.
  6. Supply chain management aides in recognizing and resolving issues quickly. It is an effective tool for the company’s overall performance.
  7. A well-executed supply chain management strategy can contribute to a company’s image enhancement. Additionally, it aids in improved communication with other stakeholders.
  8. An effective supply chain management strategy can contribute to higher employee morale and productivity.
  9. Supply chain management minimizes human error and increases transparency, resulting in a more efficient operation that benefits both customers and staff.
  10. A well-managed supply chain can assist in maintaining reliable data that is easily accessible for analysis, thereby assisting in tracking and controlling a business’s inventory.
  11. Problems are certain to arise along the way, and an efficient supply chain management plan will assist the business in determining the best course of action to avoid big layoffs or other costly consequences.

Units Studied Supply Chain Management Coursework

  1. Production
  2. Inventory
  3. Distribution
  4. Sales and marketing
  5. Finance and accounting
  6. Project management
  7. Technology
  8. Environment and social responsibility
  9. Quality assurance
  10. 10, Marketing

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