Supply chain management (SCM) is the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from starting point to end point. Interconnected networks, channels, and nodes of the business combination in the provision of products and services that are required by end customers in a supply chain. Supply-chain management is defined as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance. SCM practice draws heavily from the areas of industrial engineering, systems engineering
What is Supply Chain Management (SCM)?
Supply chain management (SCM) is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
The concept of Supply Chain Management (SCM) is based on two core ideas:
- The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain.
- The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their “Four Walls.” Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains.
Operations management, logistics, procurement, information technology, marketing and strives for an integrated approach. Marketing channels play an important role in supply chain management.The product flow includes the movement of goods from a supplier to a customer, as well as any customer returns or service needs. The information flow involves transmitting orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.
There are two main types of SCM software: planning applications and execution applications. Planning applications use advanced algorithms to determine the best way to fill an order. Execution applications track the physical status of goods, the management of materials, and financial information involving all parties.
Benefits of Supply Chain Management
- Value. Adopt value as a guiding principle to deliver superior managerial performance with significant business impact.
- Alignment. Discover tools to align core processes for operational excellence.
- Sustainability. Understand frameworks to manage risks and opportunities for sustainable supply chain management on a global scale.
Supply Chain Strategies are the critical backbone of Business Organizations today. Effective Market coverage, Availability of Products at locations that hold the key to revenue recognition depends upon the effectiveness of Supply Chain Strategy rolled out. Very simply stated, when a product is introduced in the market and advertised, the entire market in the country and all the sales counters need to have the product where the customer can buy and take delivery. Any glitch in the product not being available at the right time can result in the drop in customer interest and demand which can be disastrous. Transportation network design and management assume importance to support sales and marketing strategy.
Inventory control and inventory visibility are two very critical elements in any operations for these are the cost drivers and directly impact the bottom lines on the balance sheet. Inventory means value and is an asset to the company. Every business has a standard for inventory turnaround that is optimum for the business. Inventory turnaround refers to the number of times the inventory is sold and replaced over a period of twelve months. The health of the inventory turn relates to the health of the business.
WEB-FEB encompasses a fully integrated, technology-enabled end-to-end supply chain logistics solution that provides reliable and affordable services in Bangalore. We operate a supply chain that is efficient and modern, seamlessly merging supply chain and logistics while implementing market best practices. WEB-FEB understands the business needs of customers to tailor customized solutions within reasonable budgets. Studying the business needs of customers in-depth and designing solutions to work around their needs.We provide ready availability of services across high consumption areas across Bangalore. Tailored facilities, which are multiuser and scalable. Use of latest in technology and automation to suit logistic needs pan India. Multiple career points, with the reliable and robust distribution network. Safe, efficient, secure cargo movement through dedicated fleet services. Real-time tracking of consignments through GPS-enabled cargo tracking system.