The supply chain is the large network of Supplier, producers. They all procure the material and goods. Convert the raw goods into finished product. Then distribution of these goods and products to the Customers. The Supply chain is the interconnected link in business activities. Which provides goods and services. The Supply chain mainly deals with planning and controlling. 8 Reasons why Real Estate proves to be the best profitable business.
For effective supply chain, the member must be effective in supply chain. The co-ordinates activities by the firm in business to produce goods.
The focus of each member in the supply chain needs to be clear. must be oriented towards the servicing the customers.
This will achieved by the focusing on the policy integration for the supply chain members. For effective supply chain, there is need to share the information within the channel members. Now let’ talk about the objectives of the supply chain management.
The important goal of the supply chain is providing service. Service is all about the value the customer gets in turn of the money he pays for that service.
The competition in the supply chain is very important to provide good value and services. The other goal of the supply chain is the time effectiveness or to reduce the time required. Reducing the warehouse cost is important. So that the plant has less inventory holding.
There are the different types of supply chain. Let’s we will discuss them into brief.
- Raw material supply Chain- Raw material supply chain is the basic type of supply chain because all the goods that are manufactured are converted from raw material. So it will be wise to say that raw material is the basic link of the supply chain.
- Internal supply chain – Internal supply chain means managing the different business activities through which effective use of enterprise.
- Production supply chain- The main objective of the production supply chain is to focus on production.
- Market supply chain- These are the market supply chain and the entire chains will activate when the customer place and order for goods or services.
There is not only the flow of the goods through each supply chain. There is also the flow of the information as well as the cash through each link of the supply chain.
According to the published report on global supply chain, the market size was up to USD 3460.1 million in 2018. It is expected to reach USD 9875.2 million by 2025. There is increasing trends in the value of supply chain market mainly because forecasting accuracy. It means full availability of business data and the analytical solution offered by different enterprise.
- Effective Functioning
Supply chain management develops a business chain that to work with mutually co-ordination. The group of interconnected chain work together for one main goal, to provide the quality goods and services to the customers. So there is huge importance to the collaboration between the chain members of the supply chain.
- Better Purchasing – Companies manages their business through effective purchasing.
Thus the product could reach the market quickly without delay and the distributor shelves will be full of our company product!
The supply chain management is recently the increasing competitive marketplace. Most firms are competing with each other so there is high level of the pressure on the supply chain in order to remain competitive in the market.
There need to be integration in the system of the elements of the organization, co-ordination and restructuring of the resources so that to achieve the highest system efficiency. For effective and efficient management of the supply chain requires the integration of the information flow, material flow, purchasing and logistic activities.
The supply chain should be responsive in order to changing market requirement. The main important purpose of the responsive supply chain is to react quickly to the market demand. This type of supply chain model best suits for environment in which there is less demand predictability and alteration in the demand volume of the goods and services.
The responsive supply chain thus achieves the flexibility in the flow of the goods, information and cost, delivers high capacity to the potential market demand, maintain the low inventory level and short Cycle time.