Every business owner who sells physical products knows that without a proper strategy for managing the flow of materials at every level, from production to distribution, he may put his business at risk: when there is not enough in stock, or it takes too long for the product to reach the customer, or worse – that the products languish in the warehouse Such that their quality is compromised – all these and more can be a fatal blow to our business, so it is necessary to handle them in an informed and professional manner.
What is important to focus on in supply chain management?
Supply chain management is the management of the flow of goods and services. It includes the movement and storage of raw materials, work in progress and finished products from the point of origin to the point of consumption. Supply chain management is a strategic process that encompasses the end-to-end flow of information, products and funds.
in management Supply Chain, it is important to focus on supply chain visibility, which refers to the ability to track and monitor end-to-end supply chain activity. This visibility is essential for efficient and effective management of the supply chain. Supply chain visibility can be achieved through various means, such as enterprise resource planning systems (ERP), supply chain execution systems (SCE) and more.
Another important focus in supply chain management is inventory management. Inventory refers to the raw materials, work in progress and finished products held in stock to meet customer demand. Inventory management is a process of planning, controlling and executing inventory activities in a supply chain. It includes tasks such as forecasting customer demand, determining inventory levels, managing inventory replenishment, and monitoring inventory levels.
And both are better than one: an effective supply chain management system will focus on both supply chain visibility and inventory management in order to achieve efficient and effective operations.
3 rules of thumb for quality supply chain management:
We will finish with three important rules of thumb for inventory management and a quality supply chain. What is clear is that a well-managed supply chain should be a well-oiled machine, with each element working together seamlessly with its peers to keep goods flowing smoothly.
There are several key elements that every supply chain manager needs to keep in mind, and we will limit ourselves to three of them here:
First, it is necessary to create an effective network of suppliers, manufacturers and distributors. This network should be able to meet customer demand while ensuring inventory levels are kept low.
Second, supply chain managers need to have visibility into all aspects of the supply chain, from raw materials to finished products. This visibility helps identify bottlenecks and other areas for improvement.
Finally, supply chain management must be proactive in nature, constantly looking for ways to improve efficiency and optimize the flow of goods.