Overview Of Supply Chain Management

Life Book AZ / Business

(# Supply Chain Management)

Take the example simple, the company that produced the product from the parts, components and accessories that are purchased from other suppliers, then the products are sold to consumers, then it means your business is part of the supply chain.

Some supply chain is quite simple, others more complicated. The complexity of the supply chain based on the particularities of each business activity, as well as the complexity and the number of items produced.

THE COMPONENTS OF THE SUPPLY CHAIN

A simple supply chain is made up of a number of factors associated with the transfer of n items of the product. A supply chain begins and ends with "consumers" factor.

1. Consumers: consumers start a chain of events when they decide to buy the product was offered for sale by a company.Consumers that contact with the Sales Department of the company to put a specific number of rows and appointment delivery on a date determined. If the products that need to be produced, then the order will include both the requirements for production facilities.
2. Plan: the requirement that customers take out orders will be combined with other orders. Based on that, the plan will set out a production plan to produce the products required by the customer. The company would then have to buy the raw materials necessary to manufacture the product.
3. Purchase: purchase parts receive a list of materials and services that the Department required producers to fulfill customer's orders. The Department will submit orders to the suppliers were selected, so they moved the raw materials needed to produce on request.
4. Inventory: raw materials after being moved to the suppliers will be checked for quality, sample code included with the other specifications and then moved to the new warehouse. The provider will then send the Bills to the item for the company. The raw materials are stored in the warehouse until the required production parts used.
5. Production: Based on a production plan, material will be transferred from the warehouse to the production. The finished product that will be produced from the raw materials purchased from the supplier. After this is complete and thoroughly tested, they will again be put on preserving in the warehouse until delivery.
6. Shipping: When the finished products are shipped to the warehouse, the shipping Division will determine the most efficient delivery methods, to the goods are transferred to the front or right on customers request. When customers order, the company will send the invoice for the goods had been delivered.

SUPPLY CHAIN MANAGEMENT 

To ensure that supply chains are the best possible operation and makes for satisfied customers for the costs to a minimum, the business will have to apply the processes of supply chain management as well as technology integration. Supply chain management consists of three layers of activity that the different parts of the company will have to focus on, namely: strategic, operational and tactical.

• The strategy: in this level, the company will consider strategic decisions related to high the entire enterprise, as the scale and location of the production area, the relationship with the supplier, the products will be manufactured and sales market.
• Tactics: The tactical decision to focus on the application of the measures to generate cost advantages, such as: applying the most modern methods in the industry, proposed the strategy of purchase with the familiar vendors, working with the logistics company to up the transport cost effective , and devising the strategies relating to locations and storage methods in order to reduce the cost of storing inventory.
• Operation: the decisions at this level are given daily for the activities directly affect the flow of goods in the supply chain. Operational decisions related to making the changes in your work schedule, the purchase agreement with the vendors, receiving orders from customers and shipping goods in stock.

SUPPLY CHAIN MANAGEMENT TECHNOLOGY

If a company expected to gain many benefits from supply chain management process, then that company needs to invest in the technology. The backbone of many companies is the largest software enterprise resource planning (ERP-Enterprise Resource Planning) expensive, such as SAP and Oracle. This software supports the overarching business the entire supply chain, from the purchase of raw materials until the product warranty service after the delivery to the customer. The complexity of the applications require a large fee, not only about money but also about all the time and resources needed for successful implementation may be the solution for the entire enterprise. Italy leaders accompanied the training of human resources is the key to success in the deployment of this system. Now there are a lot of solutions for enterprise resource planning, and it is important to choose a suitable solution with the overview of the needs of enterprise supply chain.

Thanks to the broad Internet application, all businesses can make use of the software on web platform, as well as the method of contact through the Interne. The main communication, constant exchange between supplier and customer information are always updated in time-That is the key of the supply chain management.

SOURCE: ACCORDING TO SAGA.VN