Steps Of Supply Chain Management

Supply Chain Management is a concept that is based on two main essential ideas. The first one is that every product, that reaches an end user, denotes the collective effort of different organizations. These multiple organizations are collectively called a “Supply Chain”. The other concept is that since supply chains have existed for quite a long time, most of the companies have only focused on what was happening within their own organization. There are very few businesses that understood the activities of the complete chain which eventually carried the products to the final client. Due to lack of management, the results were mostly disorganized and also useless supply chains.
So supply chain management can be referred as an active management

It is important for all the companies to adopt a proper strategy in order to manage all the resources that are essential for meeting the demands of the customer. A big portion of planning of supply chain management is to develop a set of metrics in order to monitor the complete supply chain that its costs are less and provides high quality and value to clients.
• The second step of the supply chain management is “Source”. It is important for the companies to choose different suppliers in order to deliver the goods and services that are required to create their product. Thus, it is essential for the supply chain managers to develop a set of pricing, payment processes with suppliers and delivery in order to create metrics to monitor and improve the relationships. Then, supply chain management managers can use all the processes to manage their goods and different services which include receiving and authenticating the shipments, moving them to the manufacturing industries and then approving supplier

SCM keeps the record of the activities that are essential for production, packaging, testing and preparation for supply. This part is the most metric-rigorous part of the supply chain. In this part, companies can measure the quality levels, worker productivity and production output.
• “Deliver” is one of the most important parts of supply chain management where companies get the receipt of orders from clients, establish a system of granaries, pick carriers in order to get goods to clients and establish a billing system to keep the record of the