Everything About Supply Chain Management

All logistics activities, from the supply of raw materials to delivering that product to the consumer to manufacture a product, are called the supply chain. These logistics activities involve people, technologies, and resources.

What Is Supply Chain Management?

 

From the start of production to delivery, supply chain management is a system that oversees the flow of commodities, data, and finances associated with a product or service to its final destination. Today's digital-based supply chain management systems include material handling and software capabilities for product or service development, order fulfillment, and information dissemination trackings, such as suppliers, manufacturers, wholesalers, shipping and logistics providers, and retailers.
Supply chain management can also be used in global trade activities such as managing international suppliers and multinational manufacturing processes.

 

Basic Supply Chain Management Processes 

 

Order management: It means organizing business activities so that orders can be carried out correctly, on time, and without damage. It is the first stage of the chain and is very important.

Production planning: Production planning is a step in which the supply chain looks at the orders and demands of the customers, and future orders are foreseen. To this end, production processes are planned.

Purchasing: It refers to the procurement of goods and services to be used in production. The important thing at this stage is that all products and services can be purchased quickly, smoothly, and with high quality.

Production: It transforms raw materials purchased for use in production into a product without any problems within the specified time.

Stock management: It means regularly checking the stock level determined for the products. It has a critical role in supply chain management processes.

Warehouse management: It is the stage where the products are stored and ready to be transported, and their quantities and costs are determined.

Transportation: It is the transportation of the products from the warehouse to the consumer or the seller. It is the last stage of the supply chain.

 

Why Is Supply Chain Management Important? 

 

If you do not plan correctly, your supply chain management will fail. Failure to manage the product supply process will cause the stocks of the products you sell on your e-commerce site not to be renewed. Inability to calculate and optimize shipping and shipping costs will result in extra costs and lower your profit margin; If you do not manage your warehouse well, your products can take up too much space in your warehouse, which may cause additional costs. However, not planning how the products will leave the warehouse may cause the products to become obsolete in your warehouse and decrease their value. For these reasons, supply chain management in e-commerce stands out as one of the most critical issues.

 

Advantages Of Supply Chain Management 

 

The importance of the supply chain can vary from company to company, but it is one of the crucial points for all companies, whether small or medium. For this reason, chain management with the right tools and in a healthy way enables the company to grow and increase the profit rate.

 

✅Timely and undamaged deliveries increase customer satisfaction and continuity.

✅The planned execution of supply chain management effectively reduces operating costs and saves money.

✅It increases the use of resources correctly and effectively, thus increasing efficiency.

✅It ensures that the production of the enterprise continues without interruption.

✅It quickly responds to possible demands and prevents loss in unforeseen situations.

✅It enables us to be prepared for sudden changes in the market.

✅It helps to melt stocks.

✅It reduces logistics costs.

✅It contributes to the faster realization of the procurement process.

 
How To Improve Supply Chain Management?

 

1) Sharing Information
For supply chain management to be successful, businesses in this chain must trust each other. To gain this trust, it is essential to share the correct information. Companies that can ensure that the information flow is fast can respond quickly to changes in the market and customer needs and strengthen supply chain coordination.
2) Understanding Members' Performance Expectations
As the supply chain becomes more complex, balancing members' needs and maintaining mutual trust can become more complex. At this stage, it is necessary to fully understand the performance expectations of all members of the supply chain.
3) Minimizing Cost
In a constantly developing and changing competitive environment, companies should minimize their supply chain and distribution costs to expand their market shares. For this, it is necessary to examine and develop management techniques. Companies that attach importance to customer satisfaction with minimum price and can make a profit will take a better path in their financial processes.
4) Analyzing and Planning
It is essential for companies that will prefer to use supply chain management to analyze their current situation. A correct management plan should be made per the results they will achieve. Changes to the supply chain should cover all members of that chain. Businesses that cannot plan their supply chains well by their analysis may face the danger of extinction in today's competitive conditions.
5) Turning to e-Commerce
e-Commerce is a crucial business approach that constantly develops and contains information and communication technologies related to production and distribution. E-Commerce solutions should be used to ensure information sharing between commercial partners. It will be essential to transfer all processes to an electronic environment to create transparency in information sharing. Customers can place their orders on e-Commerce sites, track them and see their payment status will contribute to the trust environment that needs to be created. In addition, supplier companies will be able to follow all processes on the website.

 

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