Understanding Supply Chain Management
When you consider any of the products that you have in your home, each one is created and delivered by multiple entities. When these entities don’t communicate well, the end product’s quality suffers and so does the consumer. When products suffer and consumers are short-changed, many businesses will hire a supply chain management company to step in. Here’s how supply chain management works:
1.Product Development
The first step in selling any product or service is development. A supply chain management firm can help with ideas, strategies and development when it comes to a product that will be sold or a service that will be delivered. As a developer, you will need to locate companies from which to buy supplies and a professional management company can help you find the best supplies for your dollar.
2.Movement
Once you have purchased supplies and created your product, a supply chain management company can help you move your product from your facility. If your product is developed in stages by multiple production companies, a SCM company can ensure the timely delivery of your product from start to finish. The company can also ensure quality checks as your product is created.
3.Warehousing
Within the supply chain is warehouse operations that include the storage of goods and products within the chain. An effective SCM company can assist you in warehousing issues like facility management, inventory management and resource alignment. A supply chain management company can also help to ensure shipping accuracy, keeping your customers satisfied with your service.
4.Distribution
Distribution within the supply chain sits squarely between the Supply-Chain Operations Reference model categories of production and customer. The end goal of distribution is to deliver your product to a customer. Distribution may involve direct sales, retailers or brokers. A SCM company can help ensure the timely delivery of your product by coordinating the efforts of the companies that you work with.
5.Quality Checks
Supply chain management doesn’t end when your product is in the hands of a consumer. Quality checks in the supply management chain involve several checks. There must be a system in place to inspect suppliers, purchases, products and distribution. Quality checks go one step further, ensuring customer satisfaction once your product is in the hands of a buyer. Without various quality checks along the way, your business is at risk of selling poorly constructed or functioning goods; a risk that will sink your company quickly if it is the reality.
Supply chain management is an important part of any business that produces goods or services the public. Without a supply management company to guide you along the way, one misstep in the process can ruin your company. By hiring an SCM firm to handle the process of creating and selling your product from start to finish, you will know that your money is being well spent and that your customers are satisfied.
– Marnie Blanc blogs about accounting and education. If you are interested in a career in accounting, you might consider applying for a master’s degree at online.nec.edu/accounting-master-degree or http://www.uconn.edu.
