Global markets are increasing beyond borders and re-defining the way demand and provides are managed. Global companies are pushed by markets across continents. To maintain the price of manufacturing down, they are forced to maintain looking to arrange production facilities where the price of raw materials and labor is cheap. Sourcing of raw materials and distributors to provide the proper quality, quantity and at proper worth calls for dynamic procurement strategy spanning throughout countries.

With the above scenario you find companies procuring materials globally from varied vendors to produce raw materials to their factories situated in several continents. The completed items out of these different factory places then pass by means of numerous chains of distribution network involving warehouses, exports to completely different international locations or native markets, distributors, retailers and finally to the top customer.

In simple language, managing all activities in tandem to manage demand and supply on a worldwide scale is Supply Chain Management. As per definition SCM is the management of a network of all enterprise processes and activities involving procurement of raw supplies, manufacturing and distribution administration of Completed Goods. SCM is also called the art of administration of providing the Proper Product, On the Proper Time, Proper Place and at the Proper Value to the Customer.

Three facets of supply chain administration:

Planning: Decoding a strategic management of resources in meeting buyer demands for a service or product. In different words: what you hope to achieve with your provide chain.

Analysis: Gaining better visibility into the totally different parts of the availability chain and figuring out areas in need of improvement – to permit for higher efficiency, higher efficiency, and reduced waste.

Monitoring: Watching for discrepancies within the perform of the supply chain to mitigate errors and be certain that customers receive the right providers or products based on the right schedule.

Why SCM strategy is important for an Organization?

SCM are the critical backbone to Enterprise Organizations today. Efficient Market coverage, Availability of Products at areas that hold the key to revenue recognition relies upon upon the effectiveness of Supply Chain administration rolled out. Very simply stated, when a product is introduced out there and advertised, your entire market within the country and all the sales counters need to have the product the place the customer can buy and take delivery. Any glitch within the product not being available on the right time can lead to the drop-in customer interest and demand which will be disastrous. Transportation network design and management assume significance to support sales and advertising management.

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