Archive for the ‘Supply Chain Management’ Tag

How Important Supply Chain Management is in Modern Businesses

As defined by Tom McGuffog, Supply Chain Management is “Maximizing added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market.”

Well, it’s due to globalization, in the present time supply chain management has become a tool for thousands of multinational companies to compete effectively. For the manufacturing industry when it comes to deliver products at a competitive cost and at a higher quality than their competitors. Here, in this article, according to Stephen Soos’s point of view, we will be discussed about some reason why supply chain management has become important to today’s manufacturing industry:-

Stephen Soos thinks that in the recent days supply chain management has allowed business to not just have productivity advantage alone but also on value advantage. You can add more innovation to your product and the process by maximizing added value to them. One thing to mention here, through mass manufacturing you can get productivity advantage but with highly effective supply chain management you can achieve mass customization.

That’s not all; with mass customization your customers are given the value advantage through customized adaptation and flexible manufacturing. Also product life cycles can be improved through proper use of Supply Chain Management. Value advantage also changes the norm of traditional offerings that is ‘one-size-fits-all.’ Through Supply Chain Management, the more accepted offerings by the industry to the consumers would be a variety of products catered to different market segments and customers preferences.

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Supply Chain Management – A better way to growth with

‘Happy to help you’ – under that line companies use to mention something like –‘if you are not satisfied with this product please write us on the email xyz@hhh.com or please make a call on ‘10000000’. The lines you often see on the back of the packet of the products you buy; whether it is a piece of nice apparel or a pair of footwear or even it is any food item. What do you think – are these only lines written by the company to please their customers or a kind of customer care unit which only accept complains or sometimes take initiatives too?

If you think like this, then needed to change your thoughts a bit! Dear readers, these lines could be an important part of the most significant process of a business called Supply Chain Management. A Supply Chain Management is a long process which has so many steps in order to transform a raw material into the final product. These steps include five stages: plan, develop, make, deliver, and return.

In Supply Chain Management, the first step is known as Planning. This strategy focuses on the importance of the product in order to satisfy its customers. That is how the product meets the customers’ demands.

Then the second stage is called Develop. Under this, a company gives attention on its suppliers who keep on supplying the raw material from which the company makes the goods which are delivered by it. This phase is actually making a good relationship between the company and its raw material suppliers which involves identification of reliable suppliers, transportation the raw material, delivery and payments.

At the third stage Make, the final product is manufactured, tested and packaged. It is the stage where, the plans are made which include how to make the delivery of the final product.

As the name suggests, the forth stage Delivery is all about delivering the final products for customer use.

And then comes the final stage Return where a customer can return back the goods if finds it unsatisfactory. And the introduction you read above is a part of this important stage that is, the company addresses its customer’s questions and complains.

So, the all exercise done by the companies is all about making a good relationship with suppliers and customers, studying the competitors and making the final product more relevant and user-friendly. And finally, daily management of supply chains that could make a company to be more efficient in order to generate more and more business by providing the satisfactory products and maintaining good relationship at both ends-customers and its suppliers.

Stephen Soos is a serial entrepreneur who has set up and run a number of successful businesses in a number of vertical markets. Stephen Soos has successfully held the positions of CEO at Globus Energy and Director at Bonhoeffe. Stephen’s current business, Crystal Medical, is set to become the biggest marketplace in the world for medical equipment.

To view more details about Stephen Soos or to get in touch with him, visit http://www.crystalmedical.co.uk/.