| m Supply Chain Management is a very familiar term in | | | | changes in the corporate world due to globalization. |
| today's business world. It refers to the processes | | | | The planning for distribution is done to determine |
| which involves from the acquiring of the raw material | | | | which demands can be fulfilled by the existing supply |
| stage to the production stage to the distribution until | | | | elements. |
| it finally reaches the customer in an efficient and | | | | 4.Manufacturing Planning: The manufacturing division is |
| effective manner. It involves activities like sourcing, | | | | usually confronted with a lot of complexities when |
| procurement, production along with the logistics | | | | compared to other divisions. Meeting the demands in |
| activities. | | | | terms of maximization of the assets like people, |
| With globalization having a great impact on the supply | | | | materials, equipment and capital and planning has to |
| chain management, it has become very important for | | | | be done accordingly in terms of planning related to |
| the organizations to have global networking. A lot of | | | | engineering, assemble and the manufacturing |
| changes are seen in the corporates in terms of | | | | environments. It would help in delivering advanced |
| procurement, production and distribution. With the | | | | capabilities that would help the organization make the |
| organizations becoming more and more focused on | | | | best use of the production resources, improve |
| the efficiency and the effectiveness of the various | | | | efficiencies, increase output and lower costs. |
| core competencies stated earlier the companies have | | | | 5.Production Planning: Under production planning |
| relatively opted to outsource the other activities to a | | | | detailed scheduling is done with proper planning for |
| much effective destination. The main focus here is to | | | | procurement. The comparison of the capacity |
| satisfy the existing and the new customers by | | | | requirements from the production orders with the |
| matching or bettering the demands of the customers. | | | | available production capacity is done through detailed |
| This in turn will ensure the smooth functioning of the | | | | scheduling. |
| supply chain partners thus giving way for better and | | | | 6.Transportation and logistics planning: The planning is |
| competitive edge to the work flow. | | | | done in terms of route, management is done in |
| Strategic planning, operative planning, product | | | | terms of transportation and the planning for the billing |
| planning, production planning, supplier | | | | and delivery of the products are done accordingly. |
| management,logistics management, sales forecasting | | | | Further the end to end fulfillment would be done |
| and order fulfillment play a very vital role in the | | | | giving ways for the benefits mentioned below: |
| success of the smooth work flow. SCM has to go | | | | * With the adaptability and visibility in the supply chain |
| through a lot of complexities both internally and | | | | management there is better and almost immediate |
| externally ranging from product designs to the price | | | | response to the existing and new supply and |
| configurations till the delivery of them to the | | | | demand. Opportunities are more quickly capitalized on. |
| customers. | | | | * The level of customer satisfaction is relatively more |
| The key components of Supply Chain Management | | | | and hence boosts each and every aspect of the |
| includes : | | | | supply chain management. |
| 1.Strategic planning: Quality planning has to be done | | | | * Monitoring and tracking of the compliance can be |
| for the implementation and optimization of the | | | | done. |
| necessary tools for determining the location, size and | | | | * Better planning for procurement, management and |
| the kind of facilities opted in order to meet the | | | | transportation can be done because of relatively |
| customer service goals. | | | | lower operational expenditure. |
| 2.Demand Planning: Based on the customer demand | | | | * The business relationship gets strengthened more |
| predictions the demand planning is done thus, ensuring | | | | paving way for the achievement of goals with |
| better and accurate customer demand. | | | | excellence. |
| 3.Distribution Planning: There are a lot of recent | | | | |