Supply Chain Management for Dummies- What You Need to Know

Radhika SatheRadhika Sathe2/28/2022

What Is Supply Chain Management?

Supply chain management is a huge deal. It's your responsibility to make sure you have enough products and materials to meet the demand of all your customers. You need supply chain management to ensure that everyone has what they need when they need it. Failure to do so can result in wasted time, lost resources, and unhappy customers. It's not easy knowing what it means to be a part of the supply chain management system let alone knowing how to implement it into your business! Here's a basic idea of supply chain management for dummies.

Supply Chain Management For Dummies- Know The Basics

Supply chain management (SCM) is the process of planning, organizing, and controlling the movement of materials, products, or services in order to meet customer demand. It is all about bringing together multiple parts to create a whole product or service that a customer may need. In this guidebook, readers will learn how SCM works and what it means for them. It can be easily understood through its processes and the steps that must be taken for the supply to keep up with demand. It requires coordination between many different departments such as marketing, sales, finance, and logistics in order for companies to succeed by meeting their customer demands. There are three phases of supply chain management SCM-

Supply Chain Management For Dummies- Understanding The Five Functions

Supply chain management is a process that involves the management of the production and distribution of goods to meet customer demand. This process is vital in any company as it can be used to control costs and make more efficient use of resources. With supply chains becoming bigger and more complex, businesses have to have systems in place to manage their supply chains effectively.


Five Functions Of SCM-

In order for these systems to function well, you need to understand the five functions of supply chain management.


Supply Chain Management For Dummies- Supply Chain Operations Reference

SCOR i.e. Supply Chain Operations Reference is a process framework - maintained by the APICS Supply Chain Council - used in manufacturing and retail supply chains that focuses on the operations of each step. From implementing SCOR, processes become more efficient as well as provide benefits for organizations such as cost reduction and improved customer service.


Six Groups Of SCOR-

This enables organizing processes of the supply chain into six groups-


Key Concepts Of Performance Attributes By SCOR-

There are five key performance attributes defined by the SCOR model of a supply chain. They are-

Each of these attributes has metrics that allow the ability to benchmark the supply chain performance and track the improvements in it in a timely fashion.


Benefits Of SCOR-

The SCOR process helps companies understand how their supply chain operates and what risks might be coming from the suppliers. It can help identify where problems are arising, as well as offer a solution for those issues by providing information on steps that should be taken to reduce risk. The five-step process is repeated between every supplier in this scenario, so the SCOR model helps them see all of the important parts of their supply chain operation one step at a time.


Supply Chain Management For Dummies- Manufacturing & Warehousing

No matter what the size of your business, understanding supply chain management, and its major components will help you make decisions knowledgeably. Understanding how to manage a supply chain can help ensure that your company's product is shipped when it needs to be by anticipating demand and trends in inventory.


Inventory Management- Crucial For SCM

In order to balance the needs of your customers with the costs of meeting their needs, you need to ensure that they demand enough. Inventory management is all about balancing those demands against each other in order for appropriate production and distribution levels in supply chain.


Warehousing Is Essential-

Warehousing takes place in the middle of manufacturing and retail. When more products are made than people want, they need to be stored before they can be sold. Warehouses come into play in such cases where there is a stop-gap for when deliveries or transport doesn't happen properly at all times.


Supply Chain Management For Dummies- Evolving Process

The process of Supply Chain management has evolved over time from a manual system to a software-based. Software now helps ensure that the process runs smoothly and efficiently. From accounting, ERP, and spend management tools, data analytics tools, inventory management apps, and software (like ZipInventory) - they help with ensuring the smooth running of your business


Supply Chain Management For Dummies- Supply Chain Collaboration

What does supply chain collaboration mean? It is the practice of businesses in an industry working together to improve operations within their supply chains. There are two types of supply chain collaborations-


Supply Chain Collaboration Goals-

When collaborating with another Supply Chain business, the goals for the same have to be clear.


Benefits Of Supply Chain Collaboration-

There are many benefits of collaborating in supply chain management. Here are the highlights-