Supply chain management is the overall handling and flow of goods and services. The process starts from raw components and finally deliver the final product to the customers. Furthermore, the businesses connect with the suppliers and help the businesses to obtain the raw materials in a hassle freeway.
The supply chain management works by five different systems: planning, sourcing, manufacturing, delivery and logistics, and returning. In the planning phase, the businesses plan and manage all the vital resources to meet the customers’ needs and expectations. Furthermore, effective and efficient planning in the supply chain process helps to meet the business’s goals. The second step is the sourcing step that enhances the supplier relationships. It chooses the suppliers to provide goods and services to create the final product. In the manufacturing phase, it is vital to organize the activities like manufacturing the products, quality tests, packaging, shipping and scheduling for delivery. In the delivery and logistics phase, the businesses communicate with the customers for delivery, invoice the customers and receive payments. In the returning phase, the customers return products that do not meet the expectations and defective products.
Supply chain management is highly beneficial in the development of the business because it enhances better collaboration, improves quality control, provides on tie delivery, and checks the final product quality that will be received by the customers and makes out time for complaint resolution. It also has a higher efficiency rate, reduces overhead cost, and improves cash flow and risk mitigation. The whole working of the supply chain management by the companies enables the businesses to make intelligent decisions, choose the right partners and predict the market demands. Thus, effective management of the supply chain of the businesses creates a positive impact on the development of the organizations.
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