MEANING OF SUPPLY CHAIN MANAGEMENT: Supply chain Mangement holds all those activities associated with the flow and transformation of goods from the raw material to the end user. In addition, information both up and down the supply chain. A supply chain is a set of three or more organization linked directly by one or more of the up or as well as the downflow of products. As well as services, finances, and information from a source to a customer supply chain is a network of connections.
DEFINITION: According to Prof. P.J.Mertz, “SCM is a focus on process, integrated approach to procuring producing and delivery end products and services to customers. It includes sub-supplies, suppliers, internal operations, trade customers and end users. And of course, It covers the management of materials, information and fund flow.”
COMPONENTS OF SUPPLY CHAIN:
- Customer relationship management
- Customer service management
- Demand management
- Order fulfillment
- Manufacturing flow management
- Supplier relationship management
- Returns management
DETAILED CONCEPT OF SUPPLY CHAIN MANAGEMENT: This concept is not too long. It is not only a concept but also mentions the process of supply chain management. In addition, there are various steps are used for the SCM. These are
- RAW MATERIAL: Raw material is the first activity or the step of supply chain management. A production cant completed without the Raw material because the raw material is the first component which is required for the production process. In addition, the raw material used in the production process is like cotton, fuel, plastic, fabric etc. are those raw materials whose are beneficial to the production process.
- SUPPLIERS: Suppliers are the second step involved in supply chain management. Suppliers are those persons who supply the raw material for the process of production. They supply all kind of raw material for manufacturing. So without suppliers supply chain is impossible and they are equally as important as others.
- MANUFACTURING: When suppliers are supplying the raw material to the factory then factory starts the manufacturing of a product. They develop raw material into a product because without it a product cannot be made. In like manner, the manufacturer made the product. Like fabric and cotton makes the clothes, as well as plastic uses for additionally the various domestic use products etc are known as the manufacturing where the raw material is developed into a product.
- DISTRIBUTION: After manufacturing a product it is ready for distribution. It is the fourth step. In the same sense, Distribution to means sends the product to various areas through shipments or cargo. This product is going to sell in that area where this product has the demand. A manufacturer is to sell their product to the target marketing. In addition to, the product is sold in various areas or can be going in the foreign countries because the main aim of the manufacturer is to sell the products with the large volume of profit to their target customers.
- RETAIL LOCATION: Retail location is where the product is sold. Retailers are those persons who are selling the products in the retail place. Retail location can be described as the shops, markets or malls etc where a product is sold. It is equally as important as others because set a location to sell a product is also important. And as well as target the customers.
- CUSTOMERS: Customers are that person who purchases the particular product from retailer according to their needs. Retailers are selling the product to the customer and earn the profit. It is the last step in Supply chain management. where customers uniquely end this chain with the purchasing of the product.
