Supply chain management is an essential system; every other thing in the world is related to and affected by it. A supply chain consists of many things, from the web links and customer user interface to the auto-rickshaw or pickup driver, and every point is connected. Just take a simple example of ordering something from any E-Commerce website; these days, you can track the orders and see that the product will go through so many checkpoints. Then, from the company’s warehouse to the E-commerce site store to the head office and many places, further getting crossed from so many hands and bags, the product reaches your doorstep by a delivery guy. And assume this place is more organised than the maze; it would take you years to get your package. This is why Supply chain management is essential.
What is Supply Chain Management:-
Supply chain management is the bridge which connects the raw material to the consumers with linkage, and it handles the flow of production or the delivery services. A company creates a link of suppliers to move the materials from companies that make the raw material to the company which sells the end products to the customer or the consumers. Supply chain management creates a standardised way of making a passage from the starting point to the endpoint. It regulates the overall flow of products. In manufacturing industries, the process starts with buying raw materials and ends with the delivery to the company or shop which sells the product to the customer. While in E-commerce societies, the journey or the flow starts from our orders, then includes certain checkpoints, and finally, on the final step, we get our products.
How Does the Supply Chain Management work:-
Supply chain management works on planning and execution. Most importantly, it would be best to plan how and from whom you want to take the raw material. The main idea behind supply chain management is to improve work quality and reduce the time taken in the process. After planning everything, now it’s time to execute. Also, in this, you need to decide many things, like choosing suppliers, machinery, and vehicles which can work efficiently.
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Importance of Supply Chain Management in Our Life:-
Supply chain management plays an essential part in our life because, in today’s world, most of the food is factory-made, and packaged drinks and many more things which come directly from the industries. Moreover, if this system fails to perform, our daily life will be affected every hour. To remove this from the system, you need to identify the factor that can potentially create problems. These factors can be anything, and without any information, they will come to notice and break the flow of the continuity; for that, you need to prepare a backup. Also, restocking of parts and confirmations of everything from the phrase “it will be available” is very important. In addition, it can be a potential troublemaker. For example, E-Commerce websites usually crash if it attains heavy traffic; fixing the problem before sales is significant.
Supply Chain Management Key Features:-
Supply chain management is the face of your business in front of the customer, and the more flawless the system is, the more you can earn the trust of the consumers and the customers. Also, there is a 5 “C” formula companies have started using from a good time. So let’s check out the 5 Cs of supply chain management.
Connected:-
You must be able to access the unstructured data from social media and the structured data available on the internet. In addition, through conventional ways of ERP and B2B.
Collaboration:-
The improvement of cloud-based commerce networks with suppliers is vital to enable multi-enterprise collaboration and engagement.
Cyber-Aware:-
The internet is full of malware and hackers, and your cloud data is not safe from them. Therefore, you must harden the supply chain management systems and save them from cyber-intrusions.
Cognitively enabled:-
All the supply chain management systems are automated to an extent; only on some pages will you get human replies from the other side. It makes artificial intelligence or AI the epicentre by collating, coordinating and conducting the decisions.
Comprehensive:-
The dues are not acceptable in the supply chain for a bright future. You need to scale your analytical abilities with data in real-time, and the insights will be comprehensive and fast.
Conclusion:-
In the back days, supply chain management was based on the movement, cost, availability and physical assets. Modern-day supply chain management is based on the management of data collection in the cloud hosts, services and products bundled in solutions. Supply chain management is an overall system that affects and manages the whole structure of production and supplies, from purchasing raw materials to delivering the finished products to the customer or consumers.
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