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Supply Chain Management

Robert Wilson | Thursday 26 April 2012 ( 0 Comment)

Supply Chain is the term used to denote the entire process staring from the procurement of the raw material till the distribution of the end product to the customer. The success of any company lies in the effective supply chain management. It has been very well observed that a single loop hole in the supply chain can lead to a big disaster in terms of sales and success of the company. The simplest form of Supply Chain Management can be viewed in the stand alone restaurant. Here, the raw material is procured from the market and then different recipes are prepared to offer the best food to the customers. The entire process sounds very simple but it is not the case every time. The supply chains are now becoming more and more complex with the advancement of the businesses globally.

The global businesses require centralized management to get the consistent quality of the product at each of its branch. The multinational brand restaurant cannot be successful without proper supply chain management. The task of supply chain management becomes difficult in this case as it has to take care of various issues as mentioned below.

Appointment of vendor at all locations

The raw material cannot be procured from a single vendor to get the consistent quality and hence vendors at all the locations need to be established to get the consistent quality of raw material. In case of perishable goods, the vendor should be very near to the production place so as to avoid the spoiling of the raw material.

Arrange for the continuous supply

Apart from getting the good quality raw material, the supply chain should also take care of the continuous availability of the raw material. The delay at any level may cause a major breakage of the entire supply chain.

Monitor the manufacturing process

The supply chain management also works towards alignment of the manufacturing process. The procurement of the raw material is worthy only if it is supplied to the right department at the right time. Many products have interwoven manufacturing process For eg., delivery of pizza requires preparation of base, application of sauce, topping of vegetables, baking of pizza, packaging and then delivery. If any of the said tasks are delayed then the pizza delivery is also delayed. Hence, the proper management of the entire manufacturing process would be the key factor to get the end product in time.

Packaging of the product

Though packaging doesn’t determine the quality of the product, it is equally important as right packaging at the right time would keep the product in its best form. The packaging is also the part of the supply chain management.

Taking the product to the end customer

The supply chain can be completed only when the end product reaches the probable customer. This requires the establishment of the dealer network. The end product can be sold to the end customer with the help of direct marketing, online marketing or through successful dealer market. The decisions in all of the above cases are the strategic decisions and can be taken globally. The marketing pattern would be same globally and hence, would be the part of the strategies decided by the global supply chain management.

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