The basic definition of supply chain refers to all the processes involved in managing the supply of goods and services; this involves managing the procurement of raw materials, to the operations of manufacturing and finally to the delivery of the end products to the final users. Thus, supply chain management refers to the management of all kinds of operational details in the process of supply and delivery of goods within a company. This process directly impacts the other processes of a company to improve its overall performance.
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The main functions and parts of supply chain management include the following:
To define business boundaries and other allied relationships
Effectively managing demand and supply
Managing purchase
Managing logistics
Sale of system interface
Manufacture of system interface
Administrating product design interface
The main aspect of supply chain management is to define business boundaries and other allied relationships. The most important decisions of all the aspects of supply chain management is to make decisions on outsourcing. Moreover, in addition to the generalized concept of the determining the items to be manufactured and what the in-house process will be, these business boundaries are also used to determine the roles that should be played by both the buyers as well as the suppliers.
An important aspect of supply chain management is demand management which is the process of managing the demand of goods and services in the supply chain system. The most important demand is the demand of the finished product from the end users in the market. To meet this main demand the supply chain system must have tributaries supplying resource items and other services into the main chain. Thus, to meet supply commitments a supply chain must receive inputs from other allied links to the chain.
Then there is the section of logistics. Logistics involves all aspects of storing, moving, packaging and transporting of goods or in any way handling of goods and materials. The importance of the role played by logistics from the very beginning of supply of materials to the intermediate process of manufacturing to the very end of delivering the finished product to the customer has been identified well even in the past. Also the cost of logistical needs significantly impact the overall cost of the other processes in supply chain management.
The other components of supply chain management like selling, product design, manufacturing and purchase also form integral pieces of the whole procedural machinery. Like for instance selling is the most closely associated aspect of meeting the consumer demand. The core internal operations of the company are represented by the manufacturing unit while product design adds a significant amount of value to both the supply as well as the demand side of the wallpaper. For more details visit Management Paper the online writing service of choice for most MBA students.
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