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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.

Proper organization is beneficial in ensuring, there is order as raw materials move to manufactures where they are changed into more useful goods. Supervision of entire process is beneficial because it lowers time wastage and promotes efficiency in entire process. SCM promotes acceptable norms of handling goods and services as they move from producers to consumers. There is a very close relationship between SCM and fields such as; industrial engineering, procurement, logistics, information technology, operation management and information technology.

Services provided acts as origin of information to customers. Customers understand producers better depending on; scheduling, production procedures, product distribution and even distributions. There are various techniques used by different organizations to create a positive relationship between them and customers. Successful production of goods that satisfy both themselves and customers is one of techniques used by manufacturers to attract customers. Some manufacturers work had in order to maintain the already established customer rapport, by manufacturing goods that are of high quality.

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 promotes efficiency as goods move from producers to consumers. Efficiency enhances reduction in production cost. Supply chains that are efficient minimize time required to move goods, hence minimizing chances of production being shutdown. Cost required, when supplying goods is minimized and this is advantageous to customers.




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