Sunday, March 3, 2024

5 Benefits of Supply Chain Management

Supply chain management refers to the operational management of a system of procurement, logistics, and marketing channels in commerce. Which includes the process of getting raw materials to make goods and reach the customer.

Whenever an item is made in a business, the chain through which the process passes from getting the raw material of that item to becoming that item and reaching the customer is called a supply chain. In any business, without this chain, the goods cannot reach the customer.

Do supply chain management like this

The components of supply chain management include the raw material supplier, the manufacturer, the distributor, the retailer, and the delivery of goods to the customer. But there are some important steps to do supply chain management, know about these steps –

Planning:

For supply chain management, it is important to first understand the needs of the customer. For this, the companies either get the survey done by themselves or through any agencies that get the survey done. It is on the basis of this survey that companies understand the needs of the customers.

Making the Components of the Chain:

The most important part of supply chain management is to find all the components of the chain and build the chain. If any component of this chain does not work properly, then the goods do not reach the customer on time. For this, the company has to find the right distributor, retailer, etc.

Product Manufacturing:

You understood the needs of the customer and also selected good components for the chain. Now the next task will be to manufacture the product, test it and pack it properly and keep it ready to deliver to the customer.

Product Delivery:

The purpose of supply chain management is to deliver the product to the customer. In today’s time, there are 2 ways – first through distributors and retailers,s and second through e-commerce platforms. Through both of these, when the product reaches the customer in the right way, then a large part of the supply chain management is completed.

Returning the Product :

When the goods reach the customer, sometimes there is a defect in the product. In such a situation, the customer wants that he should get a defect-free product. The company should make a refund policy in this regard, in which the customer can either get his product replaced or he can get his money refunded. By doing this, the customer builds trust in the company, so that he uses the company’s product even further and advises others to use that product as well.

Benefits of Supply Chain Management

No business can be successful without a good supply chain, which is why every company always pays special attention to supply chain management.

Let us know the benefits of supply chain management-

Lower marketing and distribution costs:

We have to spend a lot on marketing our products. Along with this, if the company starts its own showroom, then it also costs a lot. In such a situation, if the company builds and manages the supply chain properly, then there can be a reduction in marketing and distribution costs.

Access to remote areas:

Even if the company starts its showrooms, it is not necessary that our product reaches to remote areas. Instead of this, if we find local distributors and retailers in remote areas, then we can easily reach the distant local market as well.

Trustworthy Partner :

When the company chooses someone as a distributor or retailer, it takes care of many things like the goodwill it has in the market, and how systematically it does its work. In such a situation, when a company chooses a good distributor or retailer, then its product is sold more due to its good reputation in the market.

When a company does good supply chain management by understanding its entire supply chain well, then there can be a huge increase in the profits and overall turnover of that company. If you also want to make your business successful, then definitely pay attention to supply chain management.

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