INSIGHTS

Supply Chain Management

What Is Supply Chain Management?

For supply chain management, we can say that it is the management of product and service flow. In this context, all processes that transform raw materials into final products are included in the scope of supply chain management. Active regulation of the supply-side activities of an enterprise in order to maximize customer value and gain a competitive advantage in the market is also within the context of supply chain management.

How Supply Chain Management (SCM) Works?

Supply chain management, or SCM for short, represents the efforts of suppliers to develop and implement economic supply chains as efficiently as possible. Supply chains encompass all processes, from manufacturing through product development to the information systems needed to drive those commitments. Generally, we can say that SCM tries to centrally control or link together the production, shipping and distribution of the manufactured product. In this context, businesses can reduce excess costs by managing the supply chain and deliver products to the consumer faster. We can say that this is done by providing tighter controls over internal inventories, productions, distributions, sales and inventories of company vendors.

What Are 5 Parts of SCM?

We can say that SCM has 5 different but connected parts. Let’s talk about these:

Planning:

We can say that the process to get the best results from the SCM often starts with planning how to match the supply with the customer and production demands. Businesses must anticipate what they will need and expect in the future, and act accordingly.

Sourcing:

SCM processes that run efficiently often rely on having solid relationships with suppliers. The sourcing process requires working with contracted vendors to procure all of the raw materials needed throughout the entire manufacturing process. Businesses can plan and work with the supplier they have agreed to in order to procure the required goods in advance.

Manufacturing:

In this part, which is the center of the supply chain management process, we can say that businesses transform raw materials by using the power they obtain from machinery, labor or other external sources in order to create something new. The final product, which is tried to be revealed, is a very critical target for the production process, although it is not in the last stage of supply chain management.

Delivery:

After the products are manufactured and sales are made, what a business has to do is deliver the products to the customers. The distribution process is often seen as something that will contribute to the brand image, because up to this point the customer has yet to interact with the product at all.

Returning:

The supply chain management process concludes with assistance for the merchandise and customer returns.

Why Is Supply Chain Management Important?

Supply chain management is important because it can help businesses achieve multiple business goals that they have set. To give an example, detailed control of production processes can have a positive impact on product quality, thereby reducing the risk of recalls and lawsuits, and ultimately helping to build a strong consumer brand. At the same time, controls over shipping procedures can improve work on customer service issues by avoiding costly shortages or periods of excess stock. It is very important to increase profit margins and especially for companies with large-scale, international operations.

What Does Supply Chain Management Do?

In the simplest terms, supply chain management, namely SCM, manages the goods, data and financial transactions related to a product or service, from the procurement of raw materials to the delivery of the product to its final destination.

Supply Chain Consulting

Supply chain consulting is all of the consulting services that help businesses optimize inventory and administration. All the services we have mentioned include consultancy services such as planning of production, forecasting of demands, any purchasing planning, general inventory management control and warehouse design.

What Are the Benefits of Supply Chain Management?

Successful supply chain management is crucial to business performance, as we have noted, and can benefit a number of different aspects, including streamlined goods and services operations as well as improved customer satisfaction. Its benefits are as follows:
• It plays an important role in establishing better cooperation between businesses and suppliers
• It enables the quality control phase to be done better
• It provides optimization of shipping processes
• Benefits such as reduced inventory and overhead costs
• Provides an enhanced risk reduction
• It is absolutely essential for a stronger cash flow
• They do very important work for a more agile business
• They provide better visibility and data analytics


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INSIGHTS

Supply Chain Management

What Is Supply Chain Management?

For supply chain management, we can say that it is the management of product and service flow. In this context, all processes that transform raw materials into final products are included in the scope of supply chain management. Active regulation of the supply-side activities of an enterprise in order to maximize customer value and gain a competitive advantage in the market is also within the context of supply chain management.

How Supply Chain Management (SCM) Works?

Supply chain management, or SCM for short, represents the efforts of suppliers to develop and implement economic supply chains as efficiently as possible. Supply chains encompass all processes, from manufacturing through product development to the information systems needed to drive those commitments. Generally, we can say that SCM tries to centrally control or link together the production, shipping and distribution of the manufactured product. In this context, businesses can reduce excess costs by managing the supply chain and deliver products to the consumer faster. We can say that this is done by providing tighter controls over internal inventories, productions, distributions, sales and inventories of company vendors.

What Are 5 Parts of SCM?

We can say that SCM has 5 different but connected parts. Let’s talk about these:

Planning:

We can say that the process to get the best results from the SCM often starts with planning how to match the supply with the customer and production demands. Businesses must anticipate what they will need and expect in the future, and act accordingly.

Sourcing:

SCM processes that run efficiently often rely on having solid relationships with suppliers. The sourcing process requires working with contracted vendors to procure all of the raw materials needed throughout the entire manufacturing process. Businesses can plan and work with the supplier they have agreed to in order to procure the required goods in advance.

Manufacturing:

In this part, which is the center of the supply chain management process, we can say that businesses transform raw materials by using the power they obtain from machinery, labor or other external sources in order to create something new. The final product, which is tried to be revealed, is a very critical target for the production process, although it is not in the last stage of supply chain management.

Delivery:

After the products are manufactured and sales are made, what a business has to do is deliver the products to the customers. The distribution process is often seen as something that will contribute to the brand image, because up to this point the customer has yet to interact with the product at all.

Returning:

The supply chain management process concludes with assistance for the merchandise and customer returns.

Why Is Supply Chain Management Important?

Supply chain management is important because it can help businesses achieve multiple business goals that they have set. To give an example, detailed control of production processes can have a positive impact on product quality, thereby reducing the risk of recalls and lawsuits, and ultimately helping to build a strong consumer brand. At the same time, controls over shipping procedures can improve work on customer service issues by avoiding costly shortages or periods of excess stock. It is very important to increase profit margins and especially for companies with large-scale, international operations.

What Does Supply Chain Management Do?

In the simplest terms, supply chain management, namely SCM, manages the goods, data and financial transactions related to a product or service, from the procurement of raw materials to the delivery of the product to its final destination.

Supply Chain Consulting

Supply chain consulting is all of the consulting services that help businesses optimize inventory and administration. All the services we have mentioned include consultancy services such as planning of production, forecasting of demands, any purchasing planning, general inventory management control and warehouse design.

What Are the Benefits of Supply Chain Management?

Successful supply chain management is crucial to business performance, as we have noted, and can benefit a number of different aspects, including streamlined goods and services operations as well as improved customer satisfaction. Its benefits are as follows:
• It plays an important role in establishing better cooperation between businesses and suppliers
• It enables the quality control phase to be done better
• It provides optimization of shipping processes
• Benefits such as reduced inventory and overhead costs
• Provides an enhanced risk reduction
• It is absolutely essential for a stronger cash flow
• They do very important work for a more agile business
• They provide better visibility and data analytics