What is Supply Chain Management? What are the Benefits?
One of the main objectives of businesses is to respond to the needs of customers, to gain their satisfaction and to realize production activities profitably. At this point, supply chain management helps businesses realize these goals. In this article, we will talk about the importance of the supply chain in making your business more profitable, its benefits and how its management should be.
What is a Supply Chain?
The supply chain is a network of all activities, systems, assets and people from the procurement of raw materials to the delivery to the final customer. It ensures that processes such as raw materials, product movements, packaging, inventory control, transportation are carried out systematically. People, work, resources, technology and organizations involved in this process are the components of this chain.
What is Supply Chain Management?Supply chain management is the management of all processes on the way from the manufacturer of a product or service to the consumer. For this management to run smoothly, all stages must follow each other correctly.
Stages of Supply Chain ManagementThe development of the world economy and the increasing demand for local products have made supply chain management a necessity. At this point, the following stages must follow each other in a sequential manner in order for the management to function flawlessly.
Order and Demand:
At this stage, orders for the products created as a result of customer demand are taken and care is taken to ensure the fast delivery of these orders. Purchasing: At this stage, the materials and raw materials needed by supply chain management during the production phase are purchased. Planning: In order to follow a correct sales policy in production, planning is made by considering costs and time.
Production:
At this stage, production is realized with the raw materials and materials purchased. Stock Tracking: The quantity of the products produced is determined and tracked. Warehouse Management: The products produced at this stage are stored according to stock records and made ready for shipment. Transportation Process: The finished products are transported to be delivered to customers.
What are the Benefits of Supply Chain?Supply chain management has numerous benefits for businesses.
Some of these are as follows:
Improves delivery performance. Reduces inventory. Increases the order fulfillment rate. Increases the accuracy of demand forecasts. Shortens the supply cycle time. Reduces logistics costs.Increases productivity and capacity. Increases customer satisfaction. Ensures continuity of production by clarifying the supply of inputs. Improves quality by meeting consumer demands in the best way. Reduces total costs. Allows responding to changes in the market in a shorter time.
Your Address for Effective Solutions in Your Supply Chain:
Navapp provides strategic support to eliminate resource waste and value generation of your business in supply chain management with successful software prepared using Microsoft's Enterprise Resource Planning methodologies.
Visit Navapp now to manage the digital journey of your business with its energetic staff who are familiar with Microsoft technologies and Business Central, the ERP product of the technology giant Microsoft!