29/07/2020
What are the main functions of Supply Chain Management?
Functions of Supply Chain Management
The functions of supply chain management include the following:
** Procurement -
It is the first function of supply chain management and pertains to procuring raw materials and other resources that are essential for the manufacturing of a product or good.
It requires coordination with suppliers in order for delivery to arrive without any potential delays.
**Operations -
The operations in Supply chain management include demand planning and forecasting.In order for the Supply chain to be able to properly order materials, the company has to anticipate potential market demand and the number of units that will be needed to be produced within a timely manner.
To achieve this, have to do
* Inventory management,
* Production, and
* Shipping.
If you over anticipate demand, then it could easily result in excess inventory cost. If the demand is under anticipated, the organization could be unable to meet consumer demand, which leads to revenue loss
** Logistics -
Logistics pertains to requirement for coordination. The manufacturing of products has commenced, in which it needs space for storage of raw material before the start of manufacturing and finished goods til it shipped for delivery.
This storage will call for making local warehouse arrangements.
Logistics ensures that the raw materials reach to our business at time and finished products will reach the end-point delivery without any hindrances.
** Resource Management - Production consumes raw materials, technology, time, and labor. All processes need to be efficient and effective, in which this phase will be taken care of by the resource management function team.
It decides the allocation of resources in the accurate activity at the right time to optimize the production at reduced costs.
** Information Workflow - Information sharing and distribution is what keeps all of the other functions of supply chain management on track. If the information workflow and communication are poor, it could break apart the entire chain.
