Wednesday, August 24, 2016

The Importance 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.

It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.

Physical distribution is concerned with the manner in which completed products are moved to customers. Marketing normally ends at the customer. In other words, physical distribution is essential in linking marketing channels to clients. Under this area, warehousing administration is also promoted. This is intended to reduce expenses of the company. Warehousing administration is concerned with; minimizing manpower cost, storage of goods, dispatching goods, unloading goods in the required area and also offloading them.

SCM is advantageous in society because many jobs are created. A good number of people acquire employment during distribution of products and services. Process contributes greatly in pollution reduction. When transportation of goods from producers to customers is managed well, energy consumption during this time is reduced. Less energy is used when goods are moved through modernized airports, ports, railways and improved roads.

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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