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What Are The Four Elements of Supply Chain Management?: Element One: Integration

The four elements of supply chain management are: 1) Integration, which involves effective communication and collaboration between all parts of the supply chain. 2) Operations, which includes monitoring processes to identify efficiencies and keep production on track. 3) Purchasing, which ensures needed materials and supplies are acquired on time. 4) Distribution, which involves well-planned shipping to get products to customers through logistics software and providers.

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542 views

What Are The Four Elements of Supply Chain Management?: Element One: Integration

The four elements of supply chain management are: 1) Integration, which involves effective communication and collaboration between all parts of the supply chain. 2) Operations, which includes monitoring processes to identify efficiencies and keep production on track. 3) Purchasing, which ensures needed materials and supplies are acquired on time. 4) Distribution, which involves well-planned shipping to get products to customers through logistics software and providers.

Uploaded by

arya
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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What Are the Four Elements of Supply

Chain Management?

Element One: Integration


As with any project, planning is essential to long-term success. Part of good planning
is setting up integration, which means that everyone involved in the manufacturing
process communicates and collaborates. Instead of functioning in separate divisions,
or silos, integrated teams work together to make sure the product gets to the
distribution phase. This improved communication reduces errors that cost time and
money. Since everyone is working together, leaders can also monitor the entire
operation and easily identify areas along the supply chain that can be improved.

Element Two: Operations


As important as strategy is to keeping a strong supply chain, day-to-day operations
are the backbone of the work manufacturers do. Managers monitor the work being
performed and make sure everything remains on track. Many of today’s manufacturers
operate using lean manufacturing strategies, which means that processes are
constantly evaluated to identify where things can be done more efficiently. Whether it’s
monitoring equipment to make sure you’re getting the most out of it or cutting back
work hours when production slows down, the operations team can bring major
improvements to the supply chain.

Element Three: Purchasing


You can’t make something from nothing. The purchasing area of supply chain
management makes sure a company has everything it needs to manufacture
products, including materials, supplies, tools and equipment. This means often staying
ahead of the process so that you have everything you need on hand well before you
actually need it. Without the right purchasing personnel, you could find that you end up
running out of the materials you need, delaying production, or that you overbuy and
strain the company’s budget.

Element Four: Distribution


The supply chain ends when the product lands on store shelves where customers can
buy them or their front door (if they purchase them online). But getting products there
means having a well-planned shipping process. Most companies today use logistics
software to manage their shipments, whether they handle it on their own or source
shipping to a third-party provider. When handled correctly, products are moved
expeditiously from the warehouse to the customer.

Gartner has identified eight strategic technology trends for supply chain and how
they can provide a competitive advantage.
 Artificial intelligence. ...
 Advanced analytics. ...
 Internet of Things (IoT) ...
 Intelligent things. ...
 Conversational systems. ...
 Robotic process automation. ...
 Immersive technologies. ...
 Blockchain.

Seven R’s of Supply Chain Management explained in Brief


The management of goods and services from point of manufacture to the point of
consumption refers to Supply Chain Management. It involves effectual planning,
design, execution, control, and monitoring of supply chain activities. Effective supply
chain management facilitates optimization of resources, proper flow of materials,
information and capital thereby reducing operational cost and avoiding delays.
Organizations rely on its supply chain team for the entire process of logistics.

The role of supply chain manages is integral in every industry. In order to become
a supply chain manager, the candidates should know how to take care of all the
supply chain activities. The main aim of SCM deals with taking care of 7 R’s these are
as follows:

1. Right Product
The basic constituent of supply activities are the products that are transported from the
manufacturer to the consumers. Supply chain managers should know what kind of
product needs to be manufactured, handled and transported. The best strategy is to
choose a product that is in demand and that can guarantee profits. Having right
knowledge and using the right product will facilitate in efficaciously managing the time
and resources.
2. Right Place
Next important factor is that the right product should be sent to the right place.
The supply chain managers should ensure that they have efficient and experienced
delivery staff so that the product is delivered to the right place. The managers can
develop a robust delivery system with location tracking so that both the customers and
the providers can track the exact location of the product and get it delivered to the right
place.

3. Right Price
Pricing is imperative for the businesses as it is the factor that decides whether it has
incurred profit or loss. The supply chain manager should research market trends and
set competitive prices for the goods and services. Furthermore, there should be a
system that keeps a record of the prices and updates it regularly so that the products
are sold at the right price.

4. Right Customer
Customers are the core component of supply chain processes. The managers must
have knowledge about their target market. If the products are sold in the right market
then the company gains more leads and they get the right customers that can stay with
them life-long.

5. Right Condition
The quality of deliverables is of utmost importance. It is the duty of the supply team to
ensure that the goods are stored properly and delivered to the customers in the right
condition.

6. Right Time
Time is a crucial factor in logistics. Customer’s satisfaction and long-term relationship
are only possible if the products are delivered to the customers at the right time. It is the
task of managers to develop a tracking system and coordinate with the delivery team to
get the items delivered before the deadline.

7.Right Quantity
Sending right amount of products is also important in logistics. It is the task of
the supply chain managers to find the right quantity of deliverables and to coordinate
with the manufacturing and delivery team to get the right quantity of products delivered
to the customers.

Diversion—the practice in which merchandise intended for a particular distribution channel is


shifted to be sold in another without the knowledge or permission of the primary vendor—is a
growing concern for the specialty food trade and industries overall

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