Maximizing Supply Chain Management Strategy with the Best IT Solutions

Supply chain management strategy is an important activity in the company. SCM becomes activities and decisions that are interrelated with suppliers, manufacturers, warehouses and also transportation services. Apart from that, this SCM also deals with retailers as well as consumers in an efficient manner.

With the right management, this can make the goods and services distributed in the right amount, time and location. this at the same time will be able to reduce costs and be able to meet consumer needs properly.

Understanding According to Experts
Before you know a supply chain management strategy that can be done, there are several definitions of supply chain management put forward by experts that are important for you to know, such as the following:

1. Hanfield (2002: 8)
Supply Chain Management is an integration and organization that deals with supply chain management. SCM is an activity through cooperative organizational relationships, effective and high-level business processes. In addition, it also shares information to be able to create a high-performance value system which can give organizations and companies a competitive and sustainable advantage.

2. Kalakota, 2000, p197
Supply chain management is an umbrella process. It is the process by which the product that is created and also delivered to consumers is structural. A supply chain or supply chain will point to a complex network of relationships and also maintain organization with business partners. The goal is to be able to get a production source and deliver it to consumers.

Strategy in SCM
After you know what SCM is, according to the experts, it is better if you know what is included in the supply chain management strategy. This strategy is needed to maximize the supply chain. It is also used to solve problems that can arise in any supply chain. The following are strategies that can be done:

1. Vertical integration
The first supply chain management strategy is vertical integration. This integration means that the company tries to develop its ability to be able to produce goods or services that have been obtained from suppliers.
There are two kinds of integration carried out where the first is advanced integration which suggests manufacturers make components for the finished product. The second is backward integration and will be dangerous for companies, especially those undergoing technological changes. If they are wrong in investing this money they will have a hard time facing the wave of technology.

2. Keiretsu
It is a supply chain management strategy that is still a bit unfamiliar to business people. This strategy is a combination of a few suppliers with vertical integration. In this strategy, the supplier will become part of the company. Therefore, this supplier can become part of the company and then there can be a long-term relationship between the two. With this strategy, the quality of the products produced can be maintained.

3.Virtual Company
Virtual company is a strategy to use suppliers as needed. In this strategy will rely on a variety of relationships with suppliers. The goal is to be able to provide services upon the desired request. This company has changing organizational or company boundaries. Their movements are also able to meet changing market demands.

Component
In order for this SCM strategy to work as expected, its components must be considered. That component is production where the goal is to produce according to market desires. The next component is inventory, location, transportation and the last one is information.

To be able to achieve the supply chain with maximum results and as expected, you must use the same data sources. You also have to integrate all processes in the supply chain so that human errors do not occur.

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