Supply Chain Management 3.

MANUFACTURING - Now it's time

to turn those raw materials into
HOW SUPPLY CHAIN MANAGEMENT
something useful! The organizer
WORKS?
makes sure the factories have
- Supply chain management everything they need and that
involves companies optimizing things are running efficiently.
their processes for efficiency and 4. DELIVERY - Once the product is
cost-effectiveness by controlling made, it needs to get to the stores
production, shipment, and or customers. The organizer plans
distribution. This results in the best way to ship it, considering
reduced costs, streamlined speed and cost.
operations, and faster delivery of 5. RETURNS - Sometimes, things
products to consumers. SCM need to go back to the store. The
recognizes the collaborative organizer also has a system in
efforts of multiple organizations in place to handle returns efficiently.
bringing products to market, with
IMPORTANCE OF SUPPLY CHAIN
companies increasingly viewing
MANAGEMENT
supply chains as a valuable
component of their operations. Reduced Costs: By streamlining
SCM process consists of these five operations and minimizing waste,
phases: Planning, Sourcing, companies can save money. Improved
Manufacturing, Delivery, and Efficiency: A well-managed supply chain
Returns. can get products to customers faster and
with fewer delays.
5 PHASES OF SUPPLY CHAIN
MANAGEMENT Enhanced Customer Satisfaction: When
products are delivered on time and in
1. Planning - This is where the
good condition, customers are happy.
organizer figures out what needs to
be made and how much. They Competitive Advantage: In today's global
consider things like how many market, companies that can efficiently
people want the product and how manage their supply chains can gain a
much material is needed. significant edge over their competitors.
2. SOURCING - Next, the organizer
finds the best places to get the raw
materials. They look for reliable 4 TYPES OF
suppliers who can deliver what's
SUPPLY CHAIN MANAGEMENT
needed at the right time and price.
1.) CONTINUOUS FLOW - This is one operations to increase efficiency
of the most traditional models. It is and reduce waste.
ideal for manufacturing and 4.) CUSTOM-CONFIGURED -
companies that produce the same Custom-Configured model Deals
goods constantly. Goods are in with very specific types of
continuous flow, and it is based on products or have a customer base
the stability of supply and demand with unique needs. is designed for
on the market. In the continuous customized scenarios in material
flow model, there is a constant acquisition, production assembly,
movement of materials through and delivery of finished goods. This
the supply chain, with little to no includes products with multiple
inventory buildup or storage. configurations. Example: furniture
2.) FAST CHAIN - It is suitable for stores, computer manufacturers,
businesses that have trendy and makers of musical
product lines with short life cycles. instruments.
It focuses on speed and
SUPPLY CHAIN MANAGEMENT
responsiveness to maximize
SYSTEM - Order fulfillment from
returns and minimize delivery
customers depends on an effective,
time. For instance, fashion brands
optimized supply chain, which can also
and electronic companies use
result in cheaper costs and a quicker
benefit from the fast model since
production cycle if properly handled. The
their products may be perceived
following are pioneers in supply chain
as trendy and experience quick
management (SCM) solutions, which are
turnaround periods.
now invariably cloud-based and AI and
3.) EFFICIENT CHAIN - The efficient
machine learning- driven.
chain model has been crafted for
hyper-competitive industries. TOP 10
strive to get the most output from
SUPPLY CHAIN MANAGEMENT
production equipment and labor.
SYSTEMS
Since efficiency is their main goal,
organizations using this model 1.) SAP Integrated Business Planning
make sure to prepare raw 2.) Oracle SCM Cloud
materials and manufacturing 3.) Blue Yonder
processes well in advance to avoid 4.) Microsoft Azure Supply Chain
delays. For example, Toyota Management
strives to eliminate unnecessary 5.) Microsoft Dynamics 365 Supply
steps in their supply chain Chain Management
6.) Kinaxis RapidResponse
 7.) Körber Supply Chain 3. Decide what to measure and how
8.) Manhattan Associates they will be measured - Identify
9.) Plex the areas that need to be
10.) Descartes Systems Group measured to quantify the success
of achieving your sustainability
Building a Sustainable, Responsible
goals. These could include factors
SCM
such as environment, health and
What makes a sustainable supply safety, social, compliance and
chain? energy. There are many
touchpoints to consider here from
A sustainable supply chain is one that
manufacturing to logistics, from
delivers positive impact socially,
managing inventory to what
economically, and environmentally. It
powers a facility.
also enables the delivery of your products
4. Standardisation and procedures
on time, on budget and to a high quality.
- Standardise the processes and
How to build a sustainable supply procedures by creating quality and
chain? operational manuals that consider
ESG and sustainability aspects.
1. Build your knowledge and
Ensure clear communication and
understanding of sustainability -
put the new standards into
Develop your knowledge and
practice.
understanding of your supply
5. Product design - Consider the
chain. Research supply chain
impact of product design by
sustainability practices, and the
applying design for assembly,
processes involved in producing
design for manufacture, and
your product from end-to-end.
design for repurpose principles.
Consider the current social,
Assess the energy, coatings, and
economic, and environmental
availability of raw materials used in
impact of your processes and
manufacturing. Consider if there
document them.
are processes or practices that
2. Set Objectives - Determine and
can be changed to improve the
define the priorities, goals, and
sustainability of your product.
objectives and share them across
6. Monitoring and continuous
all impacted partners within your
improvement - Continuous
supply chain. All partners need to
improvement is essential to good
have a shared ambition, a
supply chain management
common objective and a shared
because nothing ever stays
goal to achieve maximum benefit.
stationary in business. There are
 many factors that could affect your This involves selecting the most efficient
supply chain. Leaving potential and cost- effective mode of
risks unchecked could impact your transportation (trucks, ships, planes, etc,)
sustainability, quality, or profit to move goods between different stages
goals. So whether you’re building of the supply chain.
quality assurance or sustainability
into your network, you should
never be ‘done’ with developing • Warehousing
your strategy.
Logistics plans for the efficient storage of
7. Be transparent - When it comes to
goods in warehousing, including
sustainability, transparency and
managing inventory levels and ensuring
traceability are everything. Ensure
proper handling of products.
you always have the
documentation, accreditations, • Order Fulfillment
and operating standards to be able
Logistics picks, packs, and ships oreders
to demonstrate your sustainability
to customers in a timely and accurate
credentials to the market or to
manner with good condition of a product.
other suppliers in the network.
• Inventory Management
Facts about Supply Chain
This involves tracking inventory levels
Supply chains have a huge impact on
throughout the supply chain to avoid
company profits, so optimization and cost
stockouts and minimize storage costs.
reduction are always valuable. This is
especially true for industrial suppliers, • Returns Management
where the average supply chain cost is
Logistics handles the return of products
13.2%, while the best companies have
from customers, including processing
managed to optimize this number to
refunds and restocking inventory.
7,9%. That’s a 40% savings.
• Information Flow
Roles of Logistics
Efficient logistics requires a smooth flow
• Planning and Coordination
of information between all parties
Logistics manages the movement and involved in the supply chain. This includes
storage of goods throughout the supply tracking shipments, managing orders, and
chain, ensuring everything arrives at the communicating with suppliers and
right place, at the right time, and in the customers.
right condition of a product/object.
5 IMPORTANT COMPONENTS OF
• Transportation LOGISTICS
1.) WAREHOUSING & STORAGE - much of the recent news coverage
Warehouses are crucial for storing on the supply chain crisis. It is
goods until they're in demand, what gets items from the point of
particularly during periods of high origin to the final destination – and
consumer interest, like with e- everywhere in between.
commerce. As a result, warehouse 5.) INFORMATION LOGISTICS -
construction has surged due to Information logistics involves
this need to manage fluctuating managing the flow of data and
consumer demand effectively. information within an organization
Their prevalence reflects the or supply chain. It includes
essential role they play in modern processes such as data collection,
supply chains. storage, retrieval, and distribution.
2.) INVENTORY MANAGEMENT - Information logistics ensures that
Efficient inventory management relevant data is available when
involves knowing what you have, needed to support decision-
how much, and where it's stored. making and operations. Effective
Real-time inventory systems information logistics can
enable quick and precise item streamline processes, improve
retrieval for shipment. Utilizing communication, and enhance
sales data helps companies overall efficiency.
anticipate demand spikes,
allowing for proactive inventory
adjustments to prevent shortages. 7 Functions of Logistics
3.) PACKAGING - Effective packaging
1.) ORDER PROCESSING
logistics are crucial to prevent
-Involves receiving, fulfilling and
product damage during transit.
verifying orders
Packaging should maintain
-Connects Inventory Management
product quality while avoiding
with Customer Requests
excess that could inflate shipping
-First step in the physical delivery
costs and potentially affect sales
of goods
or customer satisfaction.
-GOOD ORDER PROCESSING =
Balancing product integrity and
GOOD CUSTOMER EXPERIENCE
cost efficiency is key in packaging
logistics.
4.) TRANSPORTATION & TRUCKING -
Transportation and trucking are
some of the most critical aspects
of logistics, a fact underscored by
 -Can streamline supply chain efficiency
(Meeting customs regulations
specifications, etc.)

5.) CARGO HANDLING

-Involves the movement of goods in

transit to the customer (delivery) -Ensures
products are handled safely to avoid
damages and preserve quality -Essential
in lowering logistics cost
2.) INVENTORY MANAGEMENT
-Adequate stock levels to manage -Ex. Using QR codes can help make labor
customer demand efficient instead of manually checking the
-Important since it connects contents per delivery.
inbound logistics (Supplier 6.) TRANSPORTATION
Relationship) and outbound
logistics (Order Fulfillment) -Involves decisions related to modes of
-Has to be managed properly to transport, routes and management of
avoid down times and decrease in transport costs -Picking the best route to
profit deliver products efficiently, on time and
within budget
3.) WAREHOUSING
-Ex. Creating route maps, adapting
-Strategic placing of goods in the flexible multimodal shipping, checking
warehouse for optimal accessibility and shelf life of cargo, etc.
storage
7.) MONITORING
-Warehouse Management
Systems/Automation -Involves accurate tracking and
monitoring of operations in real time
-Efficient in and out of goods
-Allows businesses to make good
-Can lead to cost reduction (Less decisions using real time updates and
warehouse employees; Less down time in prevent problems
retrieving goods, etc.)
-Integrates modern technology for global
4.) PACKAGING operations (IoT: RFID Trackers, Weather
-Protecting products through transit trackers, automated smart warehouses,
etc.)
-Essential in product safety, branding,
marketing and customer satisfaction
Difference Between SUPPLY CHAIN
MANAGEMENT AND LOGISTICS
MANAGEMENT

• The handling of a good or service's

full manufacturing flow, from the
raw materials to the delivery of the
finished product to the customer,
is known as supply chain
management. A business
establishes a network of suppliers
to distribute the product from raw
material suppliers to businesses
(retailers) that deal with customers
directly.
• Planning, implementing, and
controlling the efficient, effective
forward and reverse flows and
storage of products, services, and
associated information between
the point of origin and the site of
consumption in order to fulfill
customer needs is known as
logistics management. Its lures,
inbound and outbound logistics,
fleet management, order
fulfillment, warehousing, inventory
control, etc.