The Benefits Of Supply Chain Management -


The Benefits Of Supply Chain Management

By Eric Howard

There are a number of stages followed by every manufacturer before raw materials become finished goods. Initial stage involves harvesting of raw materials. Movement of raw materials to manufacturers then follows. Manufacturers use their equipment to convert raw materials into goods. They store them and finally distribute them so that they can reach consumers. Supply Chain Management is essential in ensuring smooth movements of goods until they are delivered to consumers.

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.

It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.

Physical distribution is concerned with the manner in which completed products are moved to customers. Marketing normally ends at the customer. In other words, physical distribution is essential in linking marketing channels to clients. Under this area, warehousing administration is also promoted. This is intended to reduce expenses of the company. Warehousing administration is concerned with; minimizing manpower cost, storage of goods, dispatching goods, unloading goods in the required area and also offloading them.

SCM is advantageous in society because many jobs are created. A good number of people acquire employment during distribution of products and services. Process contributes greatly in pollution reduction. When transportation of goods from producers to customers is managed well, energy consumption during this time is reduced. Less energy is used when goods are moved through modernized airports, ports, railways and improved roads.

Customers cannot be satisfied with goods delivered to them if they are substandard. Goods should be in right quantity and of required quality. Most importantly, manufacturers ought to ensure that information provided on the packaging is accurate and it reveals true information concerning content inside the packaging.

SCM promotes efficiency as goods move from producers to consumers. Efficiency enhances reduction in production cost. Supply chains that are efficient minimize time required to move goods, hence minimizing chances of production being shutdown. Cost required, when supplying goods is minimized and this is advantageous to customers.

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