Supply chain management is the process by which an enterprise manages the sourcing of raw materials to create a product or service and deliver that product or service to customers. The goal of SCM software is to improve supply chain performance.

Timely and accurate supply chain information allows manufacturers to make and ship only as many products as can be sold. Effective supply chain systems help both manufacturers and retailers reduce excess inventory. This decreases the cost of producing, shipping, insuring, and storing products that cannot be sold.

Supply chain management relies on business strategy, specialized software, and collaboration to work. Because it’s such an expansive, complex undertaking, each partner — from suppliers to manufacturers and beyond — must communicate and work together to create efficiencies, manage risk, and adapt quickly to change.

In addition, supply chain sustainability — which covers environmental, social, and legal issues, in addition to sustainable procurement — and the closely related concept of corporate social responsibility — which evaluates a company’s effect on the environment and social well-being — are areas of major concern for today’s companies.

Focusing supply chain management on strategic activities can have a positive impact that resounds throughout the business. There are two core areas where supply chain processes and procedures can contribute to business results: customer happiness and ROI.

Supply chain management creates a number of benefits that translate to higher profits, better brand image, and greater competitive advantage. These include the following: better ability to predict and meet customer demand; better supply chain visibility, risk management, and predictive capabilities; fewer process inefficiencies and less product waste; improvements in quality; increased sustainability, both from a societal and an environmental standpoint; lower overhead; improvements in cash flow; and more efficient logistics.

Supply chain management covers several key areas; the first stage is using supply chain analytics and materials management features in ERP systems, organizations create strategic plans to meet customer demand for products and avoid a bullwhip effect. Next, organizations identify and select vendors that can supply materials in a streamlined and efficient way according to agreements.

Supply chain collaboration starts at this stage and is important throughout the supply chain management process. This is followed by products being manufactured. It includes scheduling the production, testing, ensuring compliance requirements are followed, packing, storage, and release. Multiple machines are likely to be involved, especially for larger companies, and these increasingly use technologies such as IoT and AI to work more efficiently.

The next stage is the delivery stage pertains to logistics and focuses on getting finished goods to consumers, in whatever manner of transportation is needed. As the Amazon effect has grown, especially as a result of COVID-19, more focus is on doorstep delivery. Greater emphasis is now also on supply chain leaders working more closely with customer service. Inventory management and warehouse management systems are especially crucial at this stage.

The final stage is the return stage includes all product returns, including defective products and products that will no longer be supported. This stage also includes elements from other stages, including inventory and transportation management.

Questions

Why is supply chain management important to business?
What are the different phases in supply chain management?
Demonstrate with an aid of a diagram what is meant by the term bullwhip effect.
List FIVE (5) different roles supply management software plays in an organization.
What are some of the solutions that are used to solve some of the challenges facing supply chain management?
What are the FOUR (4) main process areas of supply chain management as described in the article?

The post ICT225: Supply chain management is the process by which an enterprise manages the sourcing of raw materials to create a product: Management Information System Assignment, SUSS appeared first on Singapore Assignment Help.