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What Is a Supply Chain? What Are the Basic Concepts of Supply Chain Management? What Does Supply Chain Management Provide?

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September 1, 2020

What Is a Supply Chain? What Are the Basic Concepts of Supply Chain Management? What Does Supply Chain Management Provide?

Supply Chain The logistics network is one of the key, indispensable elements of a business. By definition, it refers to the entire system of organizations, people, technology, activities, and resources involved in the movement of a product or service from the supplier to the customer. For a business, it affects all business processes and encompasses the technological events and customer relationships (including suppliers, manufacturers, distributors, retailers, wholesalers, and consumers), human resources, and business operations. To manage the supply chain effectively, a high-quality Supply Chain Management A plan must be developed. In warehouses with high volumes of shipments and incoming goods, address-based warehouse management has become a necessity. Knowing where your products are located (shelf, block, cell), ensuring that placement adheres to planned storage areas, implementing pallet-based movements, and integrating a specialized software system for these processes are all essential. In addition to ensuring the most efficient use of storage space, another objective of warehouse management systems is to ensure that warehouse staff, handheld terminals, material handling equipment, and drivers are utilized as efficiently as other resources.

A successful Supply Chain Management It is essential to have a thorough understanding of the fundamental concepts within the cycle, and each cycle in the chain must be fully integrated with the others. These are:;

Management of Requests and Orders: It is the process of coordinating business operations to ensure that orders from your customers are fulfilled quickly and smoothly.

Purchasing: It is the process of procuring all products and materials necessary for production in the highest quality, most quickly, and most accurately.

Planning: It is the process of accurately planning all production processes related to business operations, along with their cost calculations.

Production: The most important process on the operational side of the supply chain is the production process. It involves transforming materials from existing inventory into finished products using the right tools, within the required performance standards and timeframe, and with minimal waste.

Inventory Management: It is the process of determining the inventory levels of all necessary materials and ensuring their efficient management in accordance with the prepared production plans.

Warehouse Management: Warehouse management is one of the areas that accounts for the largest share of all supply chain activities. Effective warehouse management involves planning sales and shipping processes and calculating their costs.

Shipping (Transportation): This is the process of retrieving finished products from the warehouse, ready for sale, and delivering them to the customer.

Supply Chain Management; it enables a business to increase its profitability, improve customer satisfaction, ensure faster delivery of customer orders, reduce logistics costs, increase efficiency and inventory levels, and maintain production continuity. It builds resilience against market competitors and sudden changes. 

For more information; What Is Sustainable Supply Chain Management? You can read our article.

INNOVA Corporate Training and Consulting as we offer Supply Chain Management In the field of consulting, from identifying needs to the project planning phase and even on-site implementation E2E With a comprehensive range of (end-to-end) services, we offer you a unique customer experience to help you stay one step ahead of the competition.

Cemil ÇINAR – Senior Supply Chain Consultant – Founder of İnnova Education

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