SUPPLY CHAIN

Introduction.

All things we use daily come to us through supply chain management. For example, we use bread, rice, biscuit or something else for eating, for this, first of all, a farmer seeds the wheat then it harvests and caries to market for sale. The owners of flour mills purchase the wheat and prepare the different types of flour, then they sell the flour to the biscuit and bread maker industries, they prepare biscuit and bread, and sell it in the market, the all process is called supply chain management. A supply chain means a system of management under which raw material is procured, prepared in the original shape of the product, quality checked, packed and delivered to customers as per their demand. Supply chain management is the name of the coordination between the supplier and customers to streamline the time of product delivery, the quantity of product, quality and procedure of payments without any ambiguity between both parties. This process is integrated with all logistics support and storage of raw materials to fulfil the demand of consumers.

Importance.    

Supply Chain Management is an integral part of business, it plays an important role in the successful running of all types of business. This system provides the ideas to enhance the yield, save time, generate revenue, minimize expenditures and make it a profitable company, industry, mill or business organization. A well-organized supply chain system is compulsory for improving the efficiency of small and large industries. Strategies of this system are also useful for the technical and operational staff to make their ease performance.  An effective supply chain management remains alert about all outside effects like present forthcoming environmental and weather conditions, fashion, power of purchase of the people, social customs, and prices of fuels and gases.

Types of Supply Chain Management. 

Here two types of the supply chain system are being mentioned.

• Horizontal and Vertical Supply Chain.    A horizontal supply chain means two same companies amalgamated and become an industry for growing and expanding the business for gaining financial benefits. While in the vertical supply chain system, an organization deals with and controls the maximum stages and aspects of the production. For example, if any Sugar Mill cultivates sugarcane in agricultural lands and transports it to the mill by its logistic vehicles and employees, it would be called a vertical supply chain.    

Components.    

Supply Chain Management is a very vast field and has a lot of components. However, I would like to mention here the essential and the major components:- 

• Strategy and Plan.    The main component of the supply chain system is to prepare the strategy and plan of all activities regarding obtaining raw materials for the preparation of products and provision of the delivery services of the prepared products to the customers. As good planning is compulsory for spending a successful life, in this way a good plan and strategy have a vital role in the success of the business.

• Knowledge of Market Trends.    Supply Chain Management keeps an eye in all respect on the market’s ongoing situation and trends. According to the market situation and ongoing trends, supply chain management does homework for the collection of raw materials and takes orders for the supply of products to their consumers. Knowledge of the market trends is a big source for a firm in deciding the retail price of the products.

• Procurement of Raw Material.    Procurement of a good quality raw material has a vital role in producing the products as per the required standard of the consumers. If any mill or firm provides good quality products in the market, consumers like it and the following benefits are automatically achieved by the firm/mills:-

1. Good quality makes unique of your product in the market because no other thing can take a place of a good quality standard. Quality is a symbol of your success.
2. Provision of good quality product is the big source for advertising your company, firm or mill. In this way, you can enjoy a good reputation without using the extra resources.
3. Due to the good quality, the demand for the product is automatically enhanced and consumers purchase the product with a cheerful face by accepting your given retail price.

• Suitable Place.    Supply Chain Management selects a suitable location/site for establishing the business, where all types of vehicles can go and come back easily. Storage facilities and other basic allied facilities are avails. The place is also observed from a security point of view.

• Maintenance of Records.    Maintenance and keeping up-to-date records of all available raw materials, stock position of ready products and holding state of supply orders received from consumers is a great component of the supply chain management. Due to the non-up-to-date inventory, serious problems come with fulfilling the seasonal demands of the consumers; even routine supply orders also seem difficult.

• Collection of Raw Materials and Delivery of Products.   Coordination with all concerned to fix the date, time and quantity for collection of raw material and delivery of products to the consumers is the main component of supply chain management. This system manages the transportation way which is economical cheap and physically safe from loss/ damage of the products. Staff checks the quantity of material/product, weather conditions, and a suitable route for supply, and then they decide whether, vehicles, goods train or sea shipments would be better for supply. All efforts are made by this system, to ensure the delivery at the door of the consumer within the stipulated time frame.

• Behaviour.   It is a reality, as a human, behaviour and attitude have great importance in our life. The staff of supply chain management always has good behaviour with the customers. Your behaviour has great attraction. You can solve a lot of minor issues on the spot with the quality of good behaviour.-     

Consequences.      

After viewing the all above mentioned aspects and aspects of Supply Chain Management, the following consequences have been ascertained to establish and run a successful business.

• In the present era, effective Supply Chain Management can only compete in the market for achieving the target.

• The main responsibility of this system is the safe and sound delivery of products/materials to the consumers as per the supply order. 

• The staff of this system should have excellent communication skills, good awareness of the market and well conversant about the rules of business.

• Supply Chain Management provides logistic support to the operational staff and management staff.