The last and final stage of supply chain management is referred as the return. The delivery stage is often referred as logistics, where firms collaborate for the receipt of orders from customers, establish a network of warehouses, pick carriers to deliver products to customers and set up an invoicing system to receive payments. This stage is basically the logistics phase, where customer orders are accepted and delivery of the goods is planned. Here the products are delivered to the customer at the destined location by the supplier. This stage is considered as the most metric-intensive unit of the supply chain, where firms can gauge the quality levels, production output and worker productivity. Here, the task of the supply chain manager is to schedule all the activities required for manufacturing, testing, packaging and preparation for delivery. In this stage, the products are designed, produced, tested, packaged, and synchronized for delivery. The third step in the supply chain management process is the manufacturing or making of products that were demanded by the customer. This handling comprises receiving and examining shipments, transferring them to the manufacturing facilities and authorizing supplier payments. So in this stage, the supply chain managers need to construct a set of pricing, delivery and payment processes with suppliers and also create the metrics for controlling and improving the relationships.įinally, the supply chain managers can combine all these processes for handling their goods and services inventory. This involves not only identifying dependable suppliers but also determining different planning methods for shipping, delivery, and payment of the product.Ĭompanies need to select suppliers to deliver the items and services they require to develop their product. In this stage, we mainly concentrate on building a strong relationship with suppliers of the raw materials required for production. Develop(Source)Īfter planning, the next step involves developing or sourcing. Supply chain management mainly focuses on planning and developing a set of metrics. In this stage, the planning should mainly focus on designing a strategy that yields maximum profit.įor managing all the resources required for designing products and providing services, a strategy has to be designed by the companies. We need to develop a plan or strategy in order to address how the products and services will satisfy the demands and necessities of the customers.
The initial stage of the supply chain process is the planning stage. The five basic components of supply chain management are discussed below − Plan A supply chain is the collection of steps that a company takes to transform raw materials into a final product. Supply chain management is a process used by companies to ensure that their supply chain is efficient and cost-effective.
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