Management, Supply Chain

What is Supply Chain Management?

Business Advice | 7 March 2023 | 1 year ago

If you know anything about business and manufacturing a product, you will have heard of supply chain management. But, how much do you know about what supply chain management means, and what it involves? In this blog, we take a look at the ins and outs of supply chain management, and why it should be a key focus for any business.

What is Supply Chain Management?

Planning, coordinating and controlling the movement of products, services, and information from the point of origin to the point of consumption is known as supply chain management. Simply, the supply chain tracks materials from the beginning of their time with a business, to their place within the end product. In order for businesses to provide goods and services to clients and customers effectively and on time, effective supply chain management is needed. Otherwise, delays are likely and there’s a higher risk of mistakes being made. Supply chain management also helps businesses to reduce costs and maximise profits, by ensuring that every stage of the supply chain is working as efficiently as possible. If a part of the chain is inefficient, changes can be made to rectify this.

What Does Supply Chain Management Involve?

The aim of supply chain management is to maximise efficiency across all areas of the manufacturing process. This includes the planning, production, order fulfilment and return stages. This involves overseeing the entire network of the business, as well as the groups and people involved in the process of manufacturing and delivering a product or service. As a business, it’s important to pay close attention to every stage of the supply chain, as even small errors can have a big impact on business success.

Why is Supply Chain Management Important?

There are a lot of benefits that come with supply chain management, and it’s a hugely important part of any business. One of the main reasons for supply chain management is to minimise the costs and time taken, to ensure that everything is working as efficiently as possible. Maximising reliability and ethics is also a key part of supply chain management, as is looking into ways for the business to be sustainable. It’s important to remember that supply chain management affects the business’ bottom line, suppliers and customers, so it should be a vital focus for your business.

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