Supply Chain Management is the art of ensuring the seamless flow of goods and services. Companies worldwide strive to deliver excellence to their customers and seek out new avenues of competitiveness, all under the auspices of supply chain management. The concept of “relationships” is at the heart of supply chain management, embodying its profound impact and significance. There are different types of relationships, such as strategic, tactical, transactional, internal, and so on.
These relationships are more prevalent within the supply chain community. Effective supply chain management is crucial for organizational success.
Supply chain management is an essential part of any business. It is the process that determines how a company functions, how it needs to work together, and how to create business relationships with customers and suppliers.
The role of Supply Chain Management CM is explained further below:
- Sales and Marketing
- Finance
- Operations
- Human Resource
For sales and marketing purposes, the organization will use sales promotion strategies such as product upgrades, gift cards, marketing campaigns, and impulsive buying. Leading corporations inspire the company to invent new marketing promotions.
The finance department has two areas focused on financial reporting and management accounting. These functions have different functions, but working together can enhance the best financial position for the company.
Operation Management has evolved to maintain the position of any multinational organization. The ten areas represent many strategic areas, such as:
- Goods and services, which are design and product material
- Management of Inventory
- Layout Design and Strategy
- Strategy of location
- Maintenance
- Process and Capacity Design
- Quality Management
- Supply Chain Management
Human resources take care of current and future demands and supplies. HR is always ready to work for future demands, and HR is training for skills needed in production.
Key Drivers for Achieving an Integrated Supply Chain Strategy in an Organization
Some key drivers will help an organization in achieving an integrated supply chain:
Facilities
The facilities manager’s most considerable responsibility is to confirm the quality of the output facilities that have to be maintained by the staff. Proper quality reviews and checks by the operation should be done correctly.
Inventory
Inventory management should follow the system of JIT, also known as Just in Time. This system delivers the order to their customers as soon as they get the order.
Information
A progressive multinational corporation has hands-on information because its IT is powerful, handling daily sales and customer orders.
Sourcing
A prolific firm will be strong in its good sourcing if it begins with direct and indirect suppliers because it has recognized the significant effect of a large, global supply chain. Therefore, the company will directly work with its suppliers.
Pricing
Pricing products and services should be in conjunction with “price building” and “psychological pricing.” That is why top-listed corporations hold the world’s largest share of well-known brand equity.
Globalization
It has become a sign of globalization because every organization wants to be the leading corporation in the world.
Technology
Reputable firms work closely to automate their supply chain management systems to reduce turnaround time and improve functionality. Whenever inventory levels decrease or demand increases, the organization’s automated ERP generates invoices, which are automatically relayed to both ends of the chain.
Customer’s expectation
Prominent firms prioritize their customers because of their feedback. Their customers are their family, so they develop new ideas to facilitate them, such as a mystery shopper checking the customers’ experiences and feedback.
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