Supply Chain Management (SCM) involves a series of interconnected business processes aimed at efficiently and effectively delivering products or services to end consumers. These key supply chain business processes ensure the smooth flow of materials, information, and finances throughout the entire supply chain. Here's a summary of some key SCM business processes:
Planning and Forecasting:
Summary: This process involves developing strategies, setting goals, and forecasting demand based on market trends, historical data, and other relevant factors. Effective planning helps optimize resources and aligns supply chain activities with overall business objectives.
Sourcing and Procurement:
Summary: Sourcing and procurement focus on identifying, selecting, and managing suppliers who provide the necessary raw materials, components, or services. It involves negotiating contracts, managing relationships, and ensuring a stable supply of quality inputs at the best possible cost.
Manufacturing and Production:
Summary: This process entails transforming raw materials into finished products through manufacturing or production activities. It includes managing production schedules, quality control, and optimizing efficiency to meet demand while minimizing costs.
Inventory Management:
Summary: Inventory management involves maintaining optimal levels of stock to meet customer demand without overstocking or running out of products. It includes inventory tracking, order fulfillment, and balancing the costs of holding inventory against potential stockouts.
Distribution and Logistics:
Summary: Distribution and logistics focus on the physical movement of goods from production facilities to distribution centers, retailers, and ultimately to customers. This process involves transportation, warehousing, order fulfillment, and ensuring timely and accurate deliveries.
Demand Management:
Summary: Demand management aims to understand, influence, and respond to customer demand effectively. It involves forecasting, order management, and strategies to align supply with customer expectations.
Order Fulfillment and Customer Service:
Summary: This process encompasses receiving and processing customer orders, picking and packing products, and delivering them to customers. It also involves managing returns and providing customer support to enhance satisfaction and loyalty.
Supplier Relationship Management (SRM):
Summary: SRM focuses on building and maintaining positive relationships with suppliers. It includes collaboration, performance evaluation, and continuous improvement initiatives to enhance the overall efficiency of the supply chain.
Risk Management:
Summary: Risk management involves identifying potential risks within the supply chain, such as disruptions in supply, geopolitical events, or market fluctuations. Strategies are developed to mitigate these risks and ensure the resilience of the supply chain.
Information Technology (IT) Integration:
2. UNIT 2: KEY SUPPLY
CHAIN BUSINESS
PROCESSES
Ms. Ananya A - The Yenepoya Institute of Arts
Science Commerce
2
3. A. Strategic supply chain design process
B. Strategic sourcing process
1.STRATEGIC PLANNING
PROCESS
Ms. Ananya A - The Yenepoya Institute of Arts
Science Commerce
3
4. A. Forecasting process
B. Lifecycle Planning process
C. Promotion planning process
2.DEMAND PLANNING PROCESS
Ms. Ananya A - The Yenepoya Institute of Arts Science
Commerce
4
5. a)Safety stock planning process
b)Supply network planning process
c)Outsourcing process
d)Distribution planning
e)Customer collaboration process
f)Supplier collaboration process
3.SUPPLY PLANNING PROCESS
Ms. Ananya A - The Yenepoya Institute of Arts
Science Commerce
5
6. a)Purchase order processing
b) Receipt Confirmation
processing
c)Invoice verification process
4.PROCUREMENT PROCESS
Ms. Ananya A - The Yenepoya Institute of Arts
Science Commerce
6
