Although the degree of importance varies from company to company, we know that Supply Chain Management is one of the vital points of a business. In order to dominate the Supply Chain, first of all, it is necessary to have a good grasp of its basic phases.
WHAT IS SUPPLY CHAIN?
First of all, let’s give a quick answer to the question of what is a Supply Chain: The concept of Supply Chain; It is the set of relationships and connections that enable the movement of your product between suppliers, manufacturers, wholesalers, distributors, retailers and ultimately consumers.
“Supply Chain”, which closely concerns all working processes of enterprises; the process of all products and services from the supplier to the customer at the last stage; It can be explained as the name of the concept that covers all activities, human resources, technology, company structures and resources in this way.
All kinds of resources and components involved in all activities carried out within the Supply Chain process are converted into products and delivered to the customer at the final stage.
There is a movement from suppliers to manufacturers, distributors, wholesalers, retailers and finally to consumers within the whole of the relationships and connections that make up the Supply Chain.
Each link of this chain regularly follows each other. Similarly, we can say that there are certain stages of the Supply Chain in terms of business processes. Valuable processes such as production, stock management, material supply, distribution, sales, procurement, customer relationship management ensure the functioning of the Supply Chain.
For any company whose business is to produce, the cycle starts with the purchase of goods and good planning of the entire procurement process is achieved with good supply chain management. Businesses that cannot manage the supply process correctly face a difficult process such as not being able to fulfill orders due to lack of input even though they have orders.
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BASIC PHASES OF THE SUPPLY CHAIN
In the management of the Supply Chain, all functions that make up the chain should be integrated. A series of functions fulfill certain tasks in line with six basic objectives in the delivery of products from the supplier to the end user:
Demand and order management: It is the organization of business activities in order to meet orders from customers quickly and smoothly.
Purchasing: It is the supply of all products and materials required for production in the best quality, fast and healthy way.
Planning: It is the correct planning of the entire production process with cost calculations within the business activities.
Production: It is the most important process on the business side of the Supply Chain. It is the conversion of the previously purchased material into a product with the right tools, in the required performance and time, with low waste. In economics literature, on the other hand, production is defined as anything aimed at increasing the quantity or utility of goods and services.
Stock (Inventory) management: It is the determination of the stock levels of all necessary materials and their efficient management in accordance with the prepared production plans.
Warehouse management: Built with inventory management for businesses; managing how and in what quantity stocks are stored; It is the planning and costing of processes such as storing the finished products and keeping them ready for shipment.
Shipment (Transport): It is the management of the process of taking the finished products from the warehouse ready for sale and delivering them to the customer.
QUESTIONS TO ANSWER FOR SUPPLY CHAIN MANAGEMENT
- What products and services do you need to provide to fulfill your business activities?
- At what level should the quality and price scale of these products and services be?
- Which are the suppliers that you can supply the products and services you target?
- How is the market situation, awareness and competitive positioning of the suppliers that you will buy products and services from?
- Are there alternative foreign market options to the domestic market?
- Are there cost differences for forward purchases and advantages in cash purchases?
- What is the level of price changes in the markets where you will buy products and services, and what are they affected by?
- What is the most accurate method of communication with suppliers?
BENEFITS OF SUPPLY CHAIN MANAGEMENT
Performing Supply Chain Management with the right tools and in a healthy way will make numerous contributions to your business in every process. In order to grow your business and increase your profitability, we can summarize the benefits of Supply Chain Management as follows:
- Brings higher customer satisfaction
- Ensures the best fulfillment of orders
- Costs decrease in logistics items
- Increases efficiency and capacity
- Allows better keeping up with demand forecasts
- Delivery performance gets better
- Supply cycle time is shortened
- Provides continuity of production
- Provides resistance to sudden changes in the market
- Provides savings in total costs
USE INFORMATION AND COMMUNICATION TECHNOLOGIES EFFECTIVELY
In the field of Supply Chain Management, significant progress has been made thanks to the use of information and communication technologies at the best level. In order to satisfy your customers and every link of your Supply Chain, the Supply Chain Management solutions offered by Logo Yazilim have the capacity to meet your every need.
In all planning and control processes necessary to develop and present your products and services, advanced software provided by advanced technology and many technical tools will facilitate your work.
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