Contrary to what some people believe, there's a lot more to managing a supply chain than first meets the eye. In fact, this is one area of a business which requires extremely accurate planning and those who are involved in the process need to focus almost entirely on efficiency.
Remember, when we talk about supply chain management, we aren't only referring to one specific operation and because of all the complexities involved, the process requires thorough planning from start to finish.
CHARLOTTE
So, who all are involved in a supply chain? Generally speaking, it all starts with the sourcing of materials before moving on to the factory workers. Production managers and staff supervisors also play an important role, in that they have the responsibility to ensure the production process operates at maximum efficiency. Then we have the actual supplier who in turn passes on the goods to a distribution centre. The distribution centre will then sell the goods on to the retailer and the retailer then sells the goods to their customers.
As we can see, there are a great number of people involved in the supply chain before the goods are sold on to customers and with so many different people being involved, any number of things could go wrong and upset the entire process. If this happens, you're inevitably left with disgruntled customers and that is something which is unfortunately bad news for any business.
Effective supply chain management needs to ensure there's a high level of collaboration between all parties. Those who are responsible for this aspect of a business also need to focus on several other areas as well. For example, they need to factor in the location of the business in relation to supply and demand. They also need to address other important issues such as the location and capabilities of the relevant production facilities and the various distribution centres.
Delivery of goods is also an extremely important link in the supply chain, particularly if a company ships goods internationally. After all, shipping goods to all corners of the globe requires extensive planning and superb management in order to ensure goods aren't delayed unnecessary simply because certain procedures weren't followed. Irrespective of the type of transport being used, be it air, sea or land, each has its own unique requirements and of course companies have to operate within the framework of the law, not only in their own country, but also in the countries they ship to.
Inventory is another crucial link in the supply chain. Failure to maintain an adequate inventory will almost certainly result in a disruption of business, whereas having too much inventory can result in phenomenal losses. As a result, it's vital for management to ensure there's consistent availability of materials, be it from one single supplier, or be it from several suppliers.
Lastly but not least, when goods change hands, so does money and when payments are being made to a wide range of business, proper records need to be kept and of course someone has to be responsible for making sure all parties are paid on time. They also need to ensure their own company is being paid on time for all goods sold.
As one can see, supply chain management is by all accounts a complex field through which to navigate and as such, companies need to take whatever steps are necessary in order to ensure there are no weak links in the chain.
A Basic Introduction to Supply Chain Management
TNT Business Solutions offer a number of business outsourcing services including Supply Chain Management, Records Management and Facilities Management. If you're looking to cut down the amount of time you spend dealing with your supply chain, from sourcing uniforms, stationary or cleaning services, visit the TNT website for details of their Supply Chain Management services.
CHARLOTTE
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