The Functions of Supply Chain Management Concepts You Must Know!

Supply Chain Management - Business competition is getting tougher to be accompanied by increasingly rapid technological developments. Business companies in the e-commerce sector such as Amazon have impressive business growth where the latest business growth data from 2018 to 2019 reached 30% and a gain of 13% was obtained from global transactions, one of them in the Asia Pacific region.

There are many things that can be learned from Amazon's success. One of the most prominent is supply chain management or often referred to as SCM. With this SCM, Amazon is able to accommodate customer expectations related to the rapid delivery of goods. In Indonesia, large-scale transformation was carried out by several marketplace platforms by making goods distribution channels far more efficient.

The Importance of Supply Chains in Business
In the past, this supply chain process only involved buyers and shop owners because the sale was done in person. At present online buying and selling activities will be longer and involve many things. In every aspect of this supply chain there will be information exchange activities, fund transactions, goods management, logistics management, and the reporting process.

Now many e-commerce platforms have strategic partnerships with third parties in order to get a more efficient flow. Industrial companies cannot stand alone to greet the market, especially in reaching consumers who are the main target and become an important role in business success.

By implementing SCM, business or industrial companies can deliver fast products, fast distribution, and of course quality. Some parties that can be cooperated with are transportation companies, suppliers, special distributor networks, retailers, and others who can market products to consumers and produce mutual benefits without having to ignore customer satisfaction.

Function of Supply Chain Management Concepts
Supply Chain Management or SCM is a system for a local approach by delivering products to end customers with the help of information technology and also coordinating all elements or components of the supply chain from suppliers to retailers. According to the SCM expert, it is a product delivery activity ranging from raw materials including sources of raw materials and parts, manufacturing and assembly, warehousing and inventory tracking. SCM also includes order entry, order management, product distribution, sending to consumers and customers, as well as information systems used to monitor all activities.
After reading some of the meanings it can be concluded that the function of the SCM concept is:

1. Planning or planning
Plan what will be done in order to achieve the goals of the company or the industry itself.

2. Organize or settings
The next function of the SCM concept is achieving a plan. In order to achieve this business enterprise needs to do both technical and non-technical organizations. Everything that is not well organized will not run smoothly and as expected.

3. Staff
Because it is driven by a plan, it is important for the company to arrange the staff and human resources needed and in accordance with company needs. Don't overdo it because it's not good for company operating costs.

4. Directing or instruction
The next function of the concept of Supply Chain Management is the existence of staff or human resources, the company will create instructions that can be obeyed by staff who are also the realization of the company's plans.

5. Control
The last is control. From these instructions the company management will control and also ensure that operational standards and also the directed instructions can be in accordance with the plans and objectives so that the process of production can run optimally.

SCM is very important for business processes because it will oversee the start of the process of raw materials and components into products and then send it to the final customer and ensure that the shipment is satisfactory. By seeing the importance of Supply Chain Management, the company should update and implement this technology or software.