Supply Chain Management Software: How Does It Work?

In the world of commerce, Inspectorio provides a supply chain management system that deals with the:

• Procurement
• Operations management
• Logistics
• Marketing channels

The raw materials are transformed into a completed product and delivered to the end customer.

Supply Chain Management

SCM is the management of the flow of products and services, including all the processes that change raw materials into final products. Also, it involves active streamlining of the business’s supply-side activities, maximizing customer value, and gaining a competitive advantage in the market. A managed supply chain helps companies cut excess costs and deliver products to the customer more efficiently and faster. Good supply chain management will keep companies out of the headlines and prevents costly lawsuits and recalls.

Here are 5 most critical elements of SCM:

1. Develop a strategy
2. Source raw materials
3. Production
4. Distribution
5. Returns

How SCM works?

SCM represents the effort by suppliers to make and implement supply chains, as economical and efficient as possible. The supply chains cover everything from production to product development to the info systems required to direct the undertakings. Typically, SCM will attempt to perform the tasks:

• Link the or centrally control production
• Shipment
• Distribution of product

Supply chain management works on the following:

• Tighter control of internal inventories
• Internal production
• Distribution sales
• Inventories of company vendors
  

Five parts of Supply Chain Management

The supply chain manager will try to minimize shortages and prevent costs down. The SCM job is not merely about purchasing inventory and logistics. A report on the salary website states that the supply chain managers oversee and manage the overall logistic operations and supply chain to minimize the costs of the company’s supply chain and maximize efficiency.

Efficiency improvements and productivity go straight to the bottom line of the company. In Supply Chain Management, the manager coordinates the logistics of the aspects of the supply chain that consists of five parts:

1. Planning. The process starts with planning to match the supply with the manufacturing and customer demands.
2. Sourcing. An efficient SCM process will rely on strong relationships with the suppliers. Sourcing works with vendors supplying raw materials needed throughout the process of manufacturing.
3. Manufacturing. Transforming raw materials is the heart of the SCM process. The final product is the goal of the manufacturing process.
4. Delivering. When the products are made and sales are completed, the company should get products into the customers’ hands.
5. Returning. Sad thing but true, customers are returning the products. The return process is called reverse logistics. The company must ensure it can receive returned products and sign refunds for the returns.

Many companies consider customer returns as the interaction between the company and the customer. But, it is very essential part of customer returns is inter-company communication, which identifies the following:

• Defective products
• Expired products
• Non-conforming goods

Without giving a solution to the possible cause of the customer return, the supply chain management process will fail and future returns will persist. As a company, you would opt for the function of Supply Chain Management.