Wednesday, August 24, 2016

The Role Of Supply Chain Management

By Eric Howard


A lot happens before raw materials are converted to finished goods. After raw materials have been harvested, from their natural settings, they need to be transported and stored before they are taken to industries from where they are changed into finished goods. Finished goods are moved from manufactures to final consumer after having gone through wholesalers and retailers. Supply Chain Management plays a great role in ensuring that flow of goods and services are managed well in order to reach consumers in a good way.

This kind of management is essential in ensuring that movement of raw materials to industries is organized. Entire production process is managed well so as to produce goods that are useful to human being. Role SCM does not stop there. It ensures correct norms are practiced as these goods move out of organization to consumers. This practice is closely related to; industrial engineering, operation management, procurement, system engineering, information technology and logistics.

The manner in which manufactures handle their customers, determines how their image looks like. Customers comprehend producers better depending on the way they carry out; production process, distribution and scheduling. Good manufactures ought to come up with strategies that improve their relationships with customers. Any event that they intend to undertake should not only be of benefit to them, but also to customers. Upon capturing good image, concerned manufactures should work hard in order to maintain the already acquired image. This can be accomplished by creating goods, whose quality pleases customers.

Manufacturing process creates goods and supplies them to distribution channels available. To enhance the efficiency, entire manufacturing process ought to be flexible. This is essential in ensuring that market changes are accommodated appropriately for the betterment. The changes in manufacturing process should adopt; shorter production cycles, efficiency in meeting demands of customers and improved responsiveness of needs of customers.

Physical distribution deals with entire process until finished products are delivered to consumers. When goods reach customers the end of marketing process is marked. Proper management of warehousing has a great impact on time required for goods to reach their preferred destination. If warehouses are managed well, expense incurred as goods move to customers is reduced greatly. Good warehousing intends to; diminish manpower cost, dispatch goods, appropriate unloading of goods, efficient offloading processes and storage of goods concerned.

Through efficient SCM, manufacturers comprehend ways to use during transportation of goods for the good of customers. Need of using modern facilities such as ports, roads, railways and airports are promoted. This is essential in reducing cost incurred and also many people are employed.

SCM has a positive impact on customer service. Process ensures that right quantity of products is delivered to consumers within required time. Products are made available to customers in right location for the betterment. SCM promotes provision of after sale services of high quality to customers for better results.

SCM is intended to streamline everything from production until goods are delivered to consumers. It helps in decrease of production cost. Efficient supply chains ensure delivery of materials in time to avoid shutdown of production that would lead to increase in production in the long run. When managers come up with efficient supply chains, cost incurred when supplying goods to customers declines.




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