Pentingnya Penerapan Supply Chain Management dalam Dunia Bisnis

The Importance of Implementing Supply Chain Management in the Business World

Supply Chain Management comes as a form of awareness of the business people of the importance of collaboration between various parties involved in the business process. This of course is a form of its own progress in the business world. In the past, when a company wanted to send its products, they only used estimates and sometimes the estimates did not match market demand. This will actually make the company suffer losses. However, with supply chain management which is currently being implemented by many companies, they no longer incur large losses as happened before. With the supply chain, suppliers, distributors, and customers can jointly discuss the needs in business better so that it produces profits. The following will describe the importance of implementing supply chain management in the business world:

Definition of Supply Chain Management
Supply Chain Management is a mechanism in which there are a variety of activities including procurement, production, inventory, and also the delivery of products / services to customers. This mechanism can connect various parties involved in the process of changing raw materials into finished products. This makes the distribution of goods produced more effectively and efficiently making it easier for companies to achieve the business goals they want.

Components that are in the Supply Chain Management
1. Upstream Supply Chain
This component is an upstream part of the supply management process carried out by business people. In this process the company gets raw materials which will be used in the production process. Raw goods and supporting goods are obtained from the supplier. Thus it can be said that the main activity in the upstream supply chain is procurement of goods.

2. Internal Supply Chain
In this process there is an inhouse process used in converting raw goods from suppliers to finished goods produced by a company. In this internal supply management the things that are emphasized are production management, manufacturing, and also inventory control.

3. Downstream Supply Chain
Downstream supply chain is the last component in supply chain management. Inside there are all activities that involve shipping products / services to end customers. In general, the delivery of goods / services by a company to consumers is finally done through an external distributor.

Process in Supply Chain Management
1. Customer / Customer
Customers play an important role in the Supply Chain Management process that is run by a company. It can be said that the first supply chain in the supply chain is found in customers who order products in the form of goods / services to a company. When they will order goods / services, they will contact the sales department at the company. They will inform the department about the date of shipment and the number of items desired.

2. Planning / Planning
After the company receives important information related to the customer's ordered items, the planning department will prepare a plan related to the production process. One that is prepared by the planning department is raw materials and also supporting materials which will later be used in the production process.

3. Purchasing
The purchasing department will carry out the process of importing raw materials and other production supporting goods. In addition, they will also determine the schedule for receiving goods needed in the production process.

4. Inventory / Inventory
Before use, raw materials that have been received from the supplier will be stored in a storage warehouse. They will ensure whether the quality and quantity of raw materials obtained from the supplier are in accordance with what is desired or not so that later the production process can run well.

Production
The production department will use raw materials and other supporting goods to produce finished goods which will be sent to customers.

Transportation
The shipping department will arrange the delivery schedule for the production of goods according to the date desired by the cutomer.

Thus the explanation of the importance of Supply Chain Management in the business world that is run by a company. Companies must be able to pay attention to each component and the processes contained in the supply chain in order to achieve the goals set in the business being run. For more complete information on supply chain management, please visit this link: https://www.soltius.co.id/id/solutions-by-products/supply-chain-management