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Build a Strong Net Value for the Product With

by:VIPUTRANS     2020-09-24

Management of a supply chain not only involves a plan, it can involve a set of organizations linked directly or indirectly to each other and to the manufacturing or other aspects of the product, or service. Tools and software applications available help in executing transactions and maintain supplier relationships with a strict control on processes involved. Just like a demand plan, supply chain management encompasses planning and management of all and any movement, storage and supply of raw material and finished product. Needless to say, getting the right supply of raw materials in time, in correct quantity and specifications is the first step of manufacturing. And so, the supply chain management will entail creating and maintaining inventory of these materials and that of the ongoing work.

Once the product reaches finishing it has to be picked, packed, loaded, supplied and transported to target retailers or distributors. Overall, managing a supply chain caters not only to designing, planning and executing various activities, but also controlling and monitoring them.

In this web of interconnected processes, work is managed so to get all processes to be executed in a constant stream of coordination. The supply chain management should aim at building a strong net value for the product and the business and setting in place an infrastructure that will perform competitively enough to deliver amid the fast moving stream of demand and supply. Since the flow of raw materials and other resources goes both ways between the suppliers, manufacturer and retailers, the product is value-added all along this chain.

Any strategy for supply chain management has to be tailor made for a business enterprise. The customer remains an important focal point in supply chain management. Within the chain of supply, and across the business, there should be a smooth coordination of the functions and a complete integration of linkages. While doing so, the finishing of the product caters to the stakeholder's needs. Practical aspects like configuring the location, network goals of suppliers and production as well as factors like operating control, mode of delivery, transportation forming part of an overall distribution strategy need careful planning so that from activities to trade offs, information inputs to inventory management, payment to actual supply, all steps are well optimized.

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