Right from the origin of a product to its final consumption, the whole process is known as a supply chain, and the task for managing these supply chains is called Supply Chain Management.
Inventory of the products, raw materials, its import and export, sales, shipment services, distribution of the product, etc. are some of the activities that are managed by the supply chain management module integrated with the ERP of the organization.
This management module integrates the management of supply as well as the demand for the product. Various strategies and steps of procedures are involved in the process of managing such supply of the production of raw materials, and efficiently provide the outcome at each level of the supply chain management process.
A company involved in manufacturing of products and goods or services need to take care of various factors involving in a successful business plan like minimizing the cost of production by using the raw materials carefully and efficiently, improving in company’s performance over a longer period by manufacturing the goods according to the public demand, in addition to maintaining a healthy relationship with the clients, customers and the stakeholders of the company.
In this scenario, supply chain management comes into the picture. It takes care of the expenses of the company over the inventory of the raw materials as well as the import and export of the same. It also keeps track of the distribution of raw materials meant for the manufacturing of goods, in addition to handling the manufacturing process timelines.
Some of the advantages that a company can have by implementing the supply chain management strategies are:
– Creates healthy relations with customers
– One can track the shipment details of the products or raw materials exported or imported
– Improvise the business processes
– Reduces the cost of management of transportations as well as maintaining warehouses
– Due to the shipment tracking feature, it makes sure that the right product is sent at the right location to the right receiver
– Gives real-time information about the stock in the inventory, and hence helps in the inventory management process.
– Minimization of wastage of raw materials, cost-cutting, the efficiency achieved in the supply chain process
Summarizing the importance of supply chain management, we can say that it is one of the pillars of the company that makes it a successful one financially. It also helps an organization in penetrating unknown markets, in addition to increasing the sales of the product. The main objective of a supply chain management module is to achieve greater shareholder values and hence the growth in the current competition.
What is Supply Chain Management?
As mentioned above, a process involved in managing the activities of a manufacturing company, from importing raw materials to finally exporting the manufactured products is called supply chain management.
It helps keep a track of the flow of goods as well as services involved in the manufacturing process across the organization. It also helps in managing the supply of goods according to the market scenario and demand, to keep healthier rapports among its customers and stakeholders, and as a result, surviving the competition in the market.
It ensures that an efficient and cost-effective supply chain is developed and implemented across the organization for the fruitful manufacture of goods. The activities covered in a supply chain involve everything from raw material, production planning, timelines, the actual implementation of the production planning, information needed to maintain the machinery, to final export of the product manufactured.
Getting into a brief discussion about what a supply chain management process is, now let us see how this process works.
The basic idea or motive behind implementing a supply chain management module in an organization is to control the production, shipping, export as well as distribution of goods and services centrally in the organization. By deploying this module, the company can easily process for cost-cutting in the manufacture of goods, and deliver the stock order in time and faster too.
This is achieved by keeping a strict track and regular updates for the inventory management, stock management, production, sales, distribution of products, stock from other vendors, etc. by the module.
There is a supply chain manager in every organization who keeps an eye on the module and hence tracks the activities like cost-cutting, looking to whether there are any shortages in raw materials, whether any raw material is wasted, whether a timeline is missed, whether the cost of import of raw materials goes out of the budget of the organization, whether the products are delivered at right time, the right place to the right client, etc.
This results in the efficient working of the business processes in an organization, resulting in a rise in the sales and hence the development graph of the company, and also enhances survival in the market competition. These impacts on the organizations are long-lasting and the most important for survival and an easy-going execution of business processes for an organization.
How it is useful for your business?
Here are some of the advantages of implementing supply chain management in an organization and how it is useful for the growth of your business.
1. Helps in improving customer services by providing the on-time delivery of the product with promised quality and quantity of the products, right delivery location, right time, and finally the after-sales support.
2. Reduces the operational costs of manufacturing goods and services by decreasing the overall production cost, the overall cost for managing the supply chain, etc.
3. Improvises the budget as well as finance of the organization by increments in profits, decrements in wastage of funds in importing unnecessary raw materials, and hence increment in the inward cash in the organization.
4. Useful in medical fields, conduction of relief activities during natural disasters, emergencies, etc.
5. Helpful in diagnosing issues during the production process, working for managing the disruptions, and figuring out the movement of products from the organization to the relevant customers, etc.
6. It is helpful in the sustenance of human existence, by managing to deliver the necessities products to the people in need during natural calamities like cyclones and hurricanes when all the delivery pipelines of the organizations fail to reach the audience of their products.
7. It helps in improving the health of people like the delivery of medical supplies such as medicines can depend on supply chain management. As an outcome for the successful execution of the supply chain, necessary devices and instruments can be sent to the hospitals and medical centers to help people survive from health issues.
8. It also helps people in surviving the electricity fluctuations happening due to the climate changes, by supplying the necessary substitute devices to survive the extreme cold or hot climate without electricity.
9. It is considered to be one of the important factors that affect the growth of the organization economically.
10. Deploying a supply chain management module in the organization also creates employments for supply chain managers to maintain the module and hence more jobs can be offered.
Hence, these were some of the most important advantages that an organization observes when a supply chain management module is deployed. Delight ERP is one such software that provides the efficient implementation of the supply chain management module. In the next section, let us see how Delight ERP can help your organization in accelerating the supply chain management process.
How Delight ERP helps you to accelerate your supply chain management?
Delight ERP is one of the most popular ERP software company, working mainly with cloud-based online solutions for ERP. It provides cost-effective ERP solutions to all types of organizations, whether small-sized, large-sized, or a startup. The Delight ERP has project management, accounting, financial management, sales management, vendor and dealer management, manufacturing process management, customer relationship management, and at last a supply chain management module as a whole package of features involved in it.
Among these features, the module for supply chain management provided by the Delight ERP can help a business boost its performance and hence the growth of the organization.
Customer satisfaction, end-to-end monitoring of the production of goods, business flows, and their execution, etc. are some of the unique selling points of the supply chain management modules of the Delight ERP.
Some of the key benefits of implementing Delight ERP software for the supply chain management in your organization are as follows:
1. Improvement in quality control activities in an organization
2. Improvement in the returns on investment (ROI) of the businesses
3. Increasing the inward flow of cash
4. Improvised and healthy relationships with the vendors, suppliers, and clients
5. Reduction in the overall cost of manufacturing the products
6. Enhancement and efficiency in the network for the supply chain.
7. The software of Delight ERP is based on cloud-oriented technologies, and hence all the computations and tasks are done online. This can be an advantage for the organizations in retrieving or updating the data anytime and anywhere.
To avail of a free demo of Delight ERP software and hence its supply chain management module, contact us at firstname.lastname@example.org.
From the above discussion, we came across the introduction, advantages, and the importance of the supply chain management for an organization and also how Delight ERP software serve you better to implement the same in your company.
For detailed information and to have Free Demo visit our site or contact us at email@example.com.
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