Understanding Supply Chain Management Processes
Supply chain management (SCM) is the process of managing the flow of goods and services from raw materials to customer delivery. This involves planning, sourcing, manufacturing, delivery, and returns, all aimed at creating a more efficient system. The five core processes of SCM include planning, sourcing, manufacturing, delivery and logistics, and return logistics.
Core Functions and Benefits of SCM
The core functions of SCM involve aligning flows, integrating functions, coordinating processes, designing complex systems, and managing resources. By implementing effective SCM strategies, businesses can benefit from improved collaboration, strict quality control, greater efficiency and risk mitigation, reduced costs, optimized shipping, and better demand management.
Implementation of SCM Software
To successfully implement SCM software, businesses should follow key steps such as identifying their needs, assessing options, making a plan, mitigating risks, communicating the plan, training staff, testing regularly, and monitoring progress. Plex Systems offer solutions like Plex DemandCaster, which improve inventory management, reduce costs, exceed delivery expectations, and optimize the supply chain.