As a businessman who has a company; you should know that supply chain management is so important. It is the essential of making products and all the process until the products will be delivered to your customer. It will be the main point to make your company successful. Therefore, knowing and understanding the importance of supply chain management is a must.
Here, I will share the information about how important supply chain management is. Then, if you are new as a businessman; you should learn this earlier, so you will have more chances to be more successful than a new businessman who does not know anything about supply chain management.
Well, the strategy of supply chain management could be different from one company to another. However, here I will share the common strategy for you as a basic way to make your own strategy. The main point of this supply chain management is the same; focusing on the customer. Let’s see more information and how important it is to understand below.
The Components of Supply Chain Management
The main purpose of supply chain management is to manage and coordinate the supply and demand effectively. Concerning the supplier, stocks or supplies and the quality will make it perfect.
Well, to start understanding supply chain management; you should know the components first. Here are the basic components of supply chain management:
1. Planning Process
This is the first thing you should do. You should plan all including the analysis of customer needs, operating cost, workers and transportations.
2. Procurement of Goods
It will include the supplier for the raw materials with the best quality and the best cost.
3. The Production Process
Now is the process of making products from the raw materials. Whether it is using workers or machine; you should make sure to make it run smoothly without mistakes and on time.
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4. Warehouse Management
Warehouse management is so important. You should check all the goods and products in the warehouse. How the goods in and out should be concerned well.
5. Shipping or Delivery and Distribution
This is an important component that will make sure the products or goods are delivered on time and well. Minimize the damage and packing well.
6. Return Goods
You should be ready for any complaint or return goods and prepare to give the best response. The customer service here is needed to make the customer satisfied.
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The Basic Strategy of Supply Chain Management
Now, you should know the basic strategy of supply chain management. Therefore, your company will run smoothly and successfully. Here are the basic strategy you should know:
1. Understanding the internal condition of your own company
Knowing the company conditions will help you to manage your company better. You should know and understand all the bad and good parts of the company management. Therefore, it will be easier to manage the third party such as the suppliers.
2. Having good relationships with suppliers
Making good relationships with your company suppliers will help you get the good materials you need with the price you want. Of course, the most important thing is you will not run out of raw materials. You will get the materials easily.
3. Having good partnerships
Partnerships are also important to deliver the goods or products well to your customers.
4. Focusing on your customers
This is the most important one. You should focus on making the customers satisfied; therefore, they will always come back to you.
The Importance of Supply Chain Management
After you understand all about supply chain management; I guess you already know the importance of supply chain management for your company.
Yes, it is about having good customer service for your customers. It will make you have loyal customers even more customers in the future. It is the most important one. A company that produces goods without loyal customers will be dead sooner or later.
Besides, supply chain management also will reduce more operating cost or material if you manage them well. Then, you will have healthy and good finances.
Have you done those things above? Actually, there are more of the importance of supply chain management such as improving the worker’s quality life etc.; I only mention the general point for you above. Well, I hope you can understand now. Share this information to your business partner too and have a good day!