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Supply Chain Management

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supply chain management (SCM) is management of the

flow of goods, data, and finances related to a product or


service, from the procurement of raw materials to the
delivery of the product at its final destination.

Daraz Bangladesh, a subsidiary of the German e-


commerce giant Rocket Internet, was founded in 2012.
The platform started by offering a limited range of
products but quickly expanded to include a diverse array
of categories, from electronics and fashion to groceries
and the most selling item in daraz.

As of 2023, the best-selling categories on Daraz include:


 Fashion: Clothing, shoes, and accessories are
perennial favorites.
 Electronics: Gadgets, smartphones, and accessories
have a strong presence.
 Beauty & Health: Cosmetics, skincare, and health
Supply chain management process

This is a picture of (SCM) Supply chain manage


Daraz supply chain management is the process of
planning ,controlling ,and executing the flow and
transformation of goods and services and from raw
materials to finished products to the end customer. It
involved in sourcing ,purchasing ,manufacturing , storing
and distributing goods.
. Planning

To begin developing a supply chain process, companies


need to plan out how they will operate. For example, if a
business is selling a children's toy, then the owners need
to strategize if they will purchase the toy's components
from a supplier, manufacture the component, or buy the
entire toy from a production facility.

In the case that the company decides to manufacture the


entire product, they must then identify which raw
material supplier they should work with. Additionally,
management teams need to decide how the goods will
be produced. For example, they can be produced and
stored in inventory, be made-to-order, or be partially
manufactured and finished when a customer places an
order.

The supply chain planning stage also requires designing


and organizing the company's warehouse, manufacturing
plant, and stores to ensure efficient travel time between
sites. Executives should also establish key performance
indicators (KPIs) and collect data about the market to
project and keep track of their productivity.

By comprehensively planning, companies can align their


supply chain to their business model, ensure
collaboration between all parties within the network, and
monitor the effectiveness of their strategies.
2. Obtaining Goods
Once businesses have planned out who their suppliers
will be, they must arrange contracts and set standards for
delivery schedules and payments. Companies should
ensure thorough communication with all suppliers, as
well as track and manage inventory to maintain proper
stock levels.

Performance of suppliers, such as lead times, should also


be frequently assessed to make sure the requirements of
delivery and products are met.
3. Producing

At this stage, businesses are testing goods,


manufacturing or assembling the final products, and
packaging them for consumers. To make sure that the
business is meeting production goals, data regarding
employee and sales performance should be monitored.
This will enable management to make necessary
adjustments to employee schedules or production levels.
Managers should also create compliance standards for
facilities to ensure that products and supplies are
properly treated, stored, and disposed of.
4. Delivering Products
Not only does the delivery stage involve distributing and
transporting finished goods to retailers and consumers,
but it also encompasses answering inquiries that
customers have about a product.

Businesses should also be conducting inventory


management to make sure products are organized in the
warehouse, stored appropriately, and monitored to
prevent obsolescence.

To streamline this process, management should


implement a digital inventory management solution.
These cloud-based tools enable authorized users to
accurately track inventory, as well as send orders and
automate invoices.
5. Processing Customer Returns

Processing and managing returns are often necessary


when dealing with defective products. At this stage,
employees must identify the condition of the item and its
flaws, authorize customer returns, process refunds, and
replace obsolete items with new ones. This will enable
positive customer service and can improve customer
relationship management.

Products that are at the end of their lifecycle, meaning


they no longer have market demand or value, are also
monitored at this stage because they contribute to the
inventory of unsalable and returned items. It is important
to assess product performance and conduct frequent
quality control to prevent extra costs to carry and remove
unwanted products from the warehouse.
Key Takeaways
 An effective supply chain process ensures goods are
created and delivered to customers.
 There are 3 elements to a supply chain- external
suppliers, internal processes, and external
distributors.
 The 5 stages of a supply chain process are planning,
obtaining goods, producing, delivering, and
returning.
 To streamline supply chain management and
monitor inventory, businesses should use inventory
administration software.
Must-Read Content
Elements of the Supply Chain Process1. Planning2.
Obtaining Goods3. Producing4. Delivering Products5.
Processing Customer Returns

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