KEY ELEMENTS OF SUPPLY CHAIN

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Elements of Supply Chain Management:-


These are the basic Elements of a typical Supply Chain Management :-


* Planning

* Sourcing

* Manufacturing

* Delivery, 

* Returns. 


The planning phase refers to developing an overall strategy for the supply chain, while the other elements for executing that plan.

Now let's discuss each element in detail for your understanding.


1- Planning:- 

SCM usually begins with planning to match supply with customer and manufacturing demands. Firms must predict what their future needs will be and act accordingly. This relates to raw materials needed during each stage of manufacturing, equipment capacity and limitations, and staffing needs along the SCM process. Large entities often rely on ERP system modules to aggregate information and compile plans.

2- Procurement:-(Sourcing, Purchasing & Inbound logistics)

Procurement entails working with vendors to supply the raw materials needed throughout the manufacturing process. A company may be able to plan and work with a supplier to source or procure goods in advance. However, different industries will have different ways of getting their requirements. In general, SCM Procurement includes ensuring:


* the raw materials meet the manufacturing specification needed for the production of goods

* timely and efficiently available when required.

* the prices paid for the goods are in line with market expectations.

* the vendor has the flexibility to deliver emergency materials due to unforeseen events.

the vendor has a proven record of delivering goods on time and in good quality.


3- Manufacturing:-

After planning and finding raw materials or components, the companies transform raw materials  to finished products by using machinery and labor which is the ultimate goal of the manufacturing process, though it is not the final stage of supply chain management.

The manufacturing process may be further divided into sub-tasks such as assembly, testing, inspection, or packaging. During the manufacturing process, a firm must be mindful of waste or other controllable factors that may cause deviations from original plans.


4- Delivering:- ( warehousing, distribution, inventory management, outbound logistics)

After products are manufactured and sales are finalized, a company delivers the products to the customers which is called Distribution and for this companies used their logistic capabilities ( transportation and warehousing Inventory Management) and delivery channels to ensure timely, safe, and inexpensive delivery of products.


5- Returning:- ( Reverse Logistics)

The Return process is often called reverse logistics, and the company must ensure it has the capabilities to receive returned products from the customers and correctly assign refunds for returns received.

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