Thursday, August 25, 2016

The Role Of Supply Chain Management

By Eric Howard


A lot happens before raw materials are converted to finished goods. After raw materials have been harvested, from their natural settings, they need to be transported and stored before they are taken to industries from where they are changed into finished goods. Finished goods are moved from manufactures to final consumer after having gone through wholesalers and retailers. Supply Chain Management plays a great role in ensuring that flow of goods and services are managed well in order to reach consumers in a good way.

In case, there is poor movement of products from producers to manufactures, customers bear the burden. This indeed, shows there is need of managing movement so as to prevent innocent customers from being exploited. Logistics, information technology, operation management, procurement and industrial engineering are areas of study that are closely related to SCM. Behavior regulation of traders is accomplished with the help of SCM.

Services provided acts as origin of information to customers. Customers understand producers better depending on; scheduling, production procedures, product distribution and even distributions. There are various techniques used by different organizations to create a positive relationship between them and customers. Successful production of goods that satisfy both themselves and customers is one of techniques used by manufacturers to attract customers. Some manufacturers work had in order to maintain the already established customer rapport, by manufacturing goods that are of high quality.

Supply of products to distribution channels present is possible if manufactures perform their role well. In case, entire process is efficient and flexible enough, all can be well for better results. Flexibility is beneficial especially when there is need of manufactures to absorb market changes. Good production process is characterized by; production cycles that is short, meets desires of customers and responds to requests of customers within required time.

SCM promotes efficient use of marketing techniques. Marketing helps in creating awareness to people that there are goods capable of satisfying them. Needs of customers cannot be satisfied, if correct timing is not done. SCM ensures manufacturers comprehend importance of proper timing and techniques that they ought to adopt to achieve timely delivery of goods to customers. SCM educates the best ways to manage warehousing.

SCM is beneficial in society because it creates jobs. A large number of people are employed especially during distribution of goods to required places. It is beneficial in reduction of pollution within the society. This is possible because production process is managed closely to ensure that it is efficient. Energy consumed is generally decreased because goods are moved easily through improved modes of transport owing to modernization of airports, railway transport and construction of ports.

SCM has a positive impact on customer service. Process ensures that right quantity of products is delivered to consumers within required time. Products are made available to customers in right location for the betterment. SCM promotes provision of after sale services of high quality to customers for better results.

SCM is very helpful in helping manufacturers reduce production cost. They guide on most appropriate methods to use during production in order to ensure amount consumed during production process is little. Following correct procedures does not only lower cost of production, but also cost of supplying goods to various customers is reduced.




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