What is the control chain management?

Supplier chain is a collection of steps that the company takes to transform raw components into final products and delivery is customers. Supplier chain management (SCM) is a process that the company uses to ensure that its supplier chain is efficient and cost -effective. This usually consists of five phases: planning, development, production, logistics and revenues.

During the planning phase, a strategy must be developed to deal with how the product meets the needs of customers. A significant part of this strategy often focuses on planning a profitable supply chain. The development phase involves building a strong relationship with the suppliers of raw materials that are needed in the production of the product provided by the company. This phase includes not only identification of reliable suppliers, but also creating methods for transport, delivery and payment.

In the next stage, the product is produced, tested, packaged and is scheduled for delivery. Then the Load Phase, Customer Orders are adoptedIMANY and delivery of goods is planned. The last phase of the supply chain management is when customers can return defective products. At this stage, the company must also address customers' questions.

6 Strategic activities include building relationships with suppliers and customers and the integration of information technology (IT) into the supply chain. Studying competitors and decision -making on production and delivery would be in the tactical category. The operating category includes daily supply chain management, including production plans.

Companies are using prognosis distribution models to have the relevant inventory that is needed to meet the fluctuations in Custoptávka. Prognosis distribution models help companies maintain more efficient supply chain management strategies. According to this model, participants at the lower end of the supplier chain rather than those closest to the customer, often increase their OBrass when there is an increase in demand. Conversely, when demand is reduced, it will reduce or stop orders to prevent excessive inventory.

This greater change in demand, which can be seen in the supplier chain, because one move away from the customer is known as the effect of Whiplash or Bullwhat. A possible solution to this effect is Kanban, a method of controlling the supply chain powered by demand. Using this method, which was created in Japan, the participants of the supplier chain would respond to the actual customer orders, not to their predictions.