Enterprise today thy have to reach beyond local, regional and national in order to establish supply chain that will keep product quality high and business cost object. However, depending on supply chain there are lots of risk associates with. Achieve Excellency on Supply chain management is an ongoing process. There is no 100% proven formula to achieve it overnight. Big organizations like Manufacturers, Financial institute and pharmaceutical companies are adopting best practices in to their supply chain management process gradually. In this article I will focus 6 thing that you have to know to establish efficient supply chain management (SCM) system.
1. What is supply chain management?
Supply chain is the bones and muscles of a company. Without it, company cannot provide its goods or services to the end consumer to earn profit. Before some bookish definition I like to give you an example of a company who sale Drinking water. What need to product drinking water? A plastic Bottle and Water. But is it all they need? Obviously no. Company need to Produce Plastic bottle or have to have bottle supplier. They Manufacture the bottle or buy it from supplier. Then they need to store it in warehouse. To maintain warehouse energy, manpower, security, ERP etc. needed. Now come to Water. Water need to be purified. So it require purifying machine. They need label to name of the product. Then they need truck for shipment. They need some advertising to promote product. These is not the all. There are many more things need to be added and associated with the process until the product or service consumed by end user. So we can say Continue reading 6 thing that you have to know to establish efficient supply chain management (SCM) system