Supply chain management must be good and also run efficiently. That is because if the supply chain management does not go well as a result shipping goods to consumers can be late so that consumers become disappointed with the services provided. SCM is a series of processes that include coordination, scheduling, and also control over procurement, production, inventory and also shipping products. In addition, SCM also concerns the delivery of services to customers related to daily administration, operations, logistics, and also processing information from customers to suppliers. In short, SCM is the mechanism of all parties involved in the process of changing raw materials into products.
Supply Chain Management Process
There are several supply chain management processes or supply chain management that you must know as follows:
In most businesses or manufacturing industries, customers are the first chain to place orders. Especially if the company is OEM-oriented or Original Equipment Manufacturer. The customer will decide to buy the product offered by the company concerned then contact the sales department or sales in the company. Important information contained in the order such as the date of delivery of the product and the desired amount.
2. Planning or planning
After the order is made by the customer, the planning department will prepare a production plan to be able to produce the products needed by the customer. At this stage they realize what raw materials are needed and also what supporting materials.
3. Purchasing or purchasing
The next process is purchasing, where the purchasing department will order raw materials and supporting materials then determine the date of receipt and the amount needed.
The next process of supply chain management is inventory or inventory. Raw materials and supporting materials received by the factory. After that the quality and determination of the amount will be checked. Only then stored in a warehouse to meet production needs.
The production department will use raw materials. It also uses supporting materials which are supplied by suppliers. Then the production activities carried out to be able to produce finished goods needed by customers. The finished goods are then put into a warehouse to be sent to the customer according to a predetermined schedule.
Tips for Choosing Supply Chain Management
Supply chain management software is very important to help you manage the supply chain in your business. Without this software, it is feared that supply chain activities could not run smoothly and smoothly. Tidal supply chains make manual methods ineffective. In order to get the best supply chain software, you can do the tips as below:
1.Can be customized
Tips that can be done first customization. The software can be customized in such a way and tailored to the needs of your company. For example, it is the luxury goods industry or business that requires special serialization so that it requires an SCM that can manage the serialization.
When you compare options for SCM software, pay attention to compatibility. Choose which is compatible with your business. Software that is not compatible with your business will only make you have to overhaul the system in it so that it actually takes a long time. To see whether the software is suitable for your supply chain management or not ask for a demo or trial to the vendor.
The last is to choose a reliable, trusted, and experienced vendor. The best vendors will have the best supply chain software as well, besides that they will serve you wholeheartedly so that you are satisfied with their performance. They will also fast response to your complaints so that complaints will be followed up immediately.
Supply chain may not run manually. Good supply chain management software is needed which can help the supply chain in your business run smoothly and as expected.
Other Interesting Articles:
The Importance of Implementing Supply Chain Management in the Business World
7 Benefits of Implementing Supply Chain Management for a Company