| Supply Chain Management is a decisive element of | | | | production, delivering, and accepting returns. Each of |
| good overall business management. To ensure | | | | these elements is critical for a business to flourish. |
| profits, customer satisfaction, repeated sales and | | | | The planning stage involves drawing up of strategic |
| future growth a company needs to have an efficient | | | | plans for the company. These plans or decisions are |
| supply chain management for any type of sales. | | | | very critical for a company as they allow a company |
| Thus, goodwill building and corporate profitability are | | | | to develop a strategy for managing their production |
| seriously dependent on it. As a discipline, supply chain | | | | flow process. The process of sourcing which is an |
| management is gaining regard as more and more | | | | extension of the planning process also plays a |
| companies are recognizing the significance of | | | | significant part in deciding the profits a company is |
| managing the network of facilities and distribution | | | | going to make. It is during this phase that the |
| options that facilitate procurement of raw materials, | | | | company decides from where to procure the raw |
| transformation of these raw materials into finished | | | | materials needed for the production. The company |
| products, and the distribution of these finished | | | | has to select a supplier who gives it best quality raw |
| products to the customers. | | | | material at the lowest possible prices, so as to |
| A supply chain exists in every company whether it is | | | | maximize its profits and provide quality finished |
| manufacturing products or offering services. | | | | products to the consumers. Managing inventory of |
| However, its complexity varies greatly from business | | | | the goods and services a company receives from its |
| to business. For instance, a company providing | | | | suppliers is another very significant task involved in |
| services may have a lesser complex supply chain | | | | supply chain management. |
| than that of a company manufacturing products. | | | | After planning and sourcing a company has to start |
| Supply chain management is undertaken basically to | | | | production. This is the most important step in a |
| fulfill the goals of an organization. These goals can be | | | | supply chain. It includes all the activities and decisions |
| both long term as well as short term. This term | | | | necessary for production, testing, packaging and |
| greatly influences the kind of decisions taken for | | | | preparation for delivery. Delivery is the next phase to |
| supply chain management. | | | | consider. It is generally referred to as logistics or |
| Supply Chain Management primarily encompasses the | | | | shipping. In this phase a company has to set up a |
| processes by which raw materials are acquired and | | | | proper delivery mechanism, under which he has to |
| used to manufacture the end products. It also | | | | develop a network of warehouses, pick carriers to |
| includes the processes involved in the delivery of the | | | | get products to customers and set up an invoicing |
| finished goods, and the ability to process returned | | | | system to receive payments. Last but not the least |
| goods. Thus, the supply chain management basically | | | | element of the Supply Chain Management is the |
| covers the issues related to planning, sourcing, | | | | returns process. Customers are not always satisfied |
| producing, delivering and servicing. Its fundamental | | | | with the products, thus, every company should have |
| purpose is to ensure that the products can be | | | | a network for receiving the returned goods and |
| produced and delivered in an efficient and profitable | | | | satisfying its customers. |
| manner. | | | | Mansi gupta recommends that you visit SCM & |
| The five primary elements which together comprise | | | | Distribution for more information. |
| the Supply Chain Management are planning, sourcing, | | | | |