In business, Supply Chain is one of the activities that help businesses orient their strategies effectively. In addition, they also directly affect the production and business activities of enterprises. Therefore, good Supply Chain management will help businesses gain an advantage in the market compared to other competitors. So what is Suppy chain? The information below that Giaiphapdonggoi.net we provide will help you partly answer those questions.
1. What is Supply Chain?
Supply Chain is a network between a company and its suppliers to produce and distribute a particular product or service to the end buyer. A supply chain represents the steps that need to be taken to get a product or service from its initial state to the customer. Those steps include moving and transforming raw materials into finished products, transporting those products, and delivering them to end users. Participating in the supply chain includes entities such as manufacturers, suppliers, warehouses, transportation companies, distribution centers, and retailers.
What is Supply Chain?
Supply chain management is a very important process because an optimized supply chain leads to lower costs and faster production cycles.
Supply chain elements include all functions starting from taking orders to fulfilling customer requirements. Supply chain management is a very important part of the business process of enterprises. There are many different links in the supply chain that require skill and expertise. Effective supply chain management can reduce a company's overall costs and help increase profits. If a link breaks, it can affect the rest of the chain and can also be costly.
By cutting delays in the delivery of a product or service, successful supply chain management also enhances customer service.
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2. Why is supply chain management (SCM) so important?
Why is supply chain management (SCM) so important?
An efficient, optimized supply chain has been vital to the fulfillment of customer orders for a company. But when managed correctly, it can also lead to much lower costs and faster production cycles. SCM is a term that encompasses product development, sourcing, manufacturing, purchasing, logistics and more when referring to activities in the supply chain. Without it, companies risk reducing customers and losing competitive advantages in their respective industries.
An efficient supply chain will operate with an efficient payback process. It has been found that customers are 71% more likely to become returning customers if they are satisfied with the way their return process has been handled.
SCM is not only about making the process as efficient as possible, it is also critical to reducing risk and ensuring everything runs smoothly. This is because of the many factors that make up the supply chain, from production sites and warehouses to shipping, inventory management, and order fulfillment.
Each step of this process carries loads of risk and the potential to derail the entire customer order. Minimizing delays, optimizing the time of day goods are moved, inventory lead times, and order dispatching are all things that can have a huge impact on operations. Without an optimized SCM process, the chain could break in the first place.
3. What are the stages in the supply chain?
In its simplest form, the stages in the supply chain are described in the Carrier's Value Chain, and this can be considered a good guide to supply chain structure:
Logistics
Work
Marketing and Sales
Service
4. The contents to note of Supply Chain
First: Supply chain management versus business logistics management
The terms supply chain management and business logistics management - or simply logistics - are often used interchangeably. Logistics - a link in the supply chain.
Supply chain management versus business logistics management
Logistics refers specifically to the part of the supply chain that deals with the planning and control of the movement and storage of goods and services from their point of origin to their final destination. Logistics management starts with raw materials and ends with the delivery of the final product.
Successful logistics management is the assurance that there are no delays in delivery at any point in the chain and that products and services are delivered in good condition. As this will help reduce the cost of the company.
Second: How the production cost stream works
The production cost stream refers to
The process of using materials and labor to complete a finished product that can be sold to a customer. A supply chain management system can reduce the cost and complexity of the manufacturing process, especially for a manufacturer that uses multiple parts to produce a product.
Example: A clothing manufacturer first transfers raw materials into production such as the fabric, zippers, and other parts used to make the garment. The manufacturer then has to bear the cost of labor to operate the machines and perform other works using the materials. Once these items are completed, they must be packaged and stored until they are sold to the customer.
Third: Reliable supplier
Trusted supplier
An effective Supply chain management process requires reliable suppliers. That is, they produce a quality product or service that meets the manufacturer's needs, and that product is delivered on time.
For example, suppose that ABC Furniture Company manufactures high-end furniture and a supplier supplies metal handles and other attachments. Metal components need to be durable so they can be used for many years, and metal parts shipped to ABC must function as intended. This supplier needs to be able to fulfill manufacturer orders and ship these metal parts to meet ABC Furniture's production needs. These steps are essential to producing a quality product that must be shipped to the customer in a timely manner.
Wednesday: Supply Chains and Deflation
The development and increasing efficiency of the Supply chain has played a very important role in curbing inflation. As efficiency increases in moving products from A to B, costs go down, which reduces the final cost for the consumer. While deflation is often viewed as a negative, supply chain performance shows that deflation is a good thing.
As globalization continues, the efficiency of the Supply chain becomes more optimal, which reduces the pressure on input prices.
Thus, Giaiphapdonggoi.net we have introduced to you all the information about Supply Chain - supply chain. Hopefully, the information we provide through this article you have understood what Supply Chain is, right.
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