Know About the Primary Functions of Supply Chain Management In the recent decade, organizations have found the importance of effective supply chain management for competing in the networked economy and the global market. Basically, supply chain management is a cross-functional approach that involves the management of the flow of raw materials into an organization, certain facets of the internal processing of the transformation of materials into finished goods, and the flow of finished goods from the organization and to the end user. Therefore, supply chain management is the sustenance of an organization and it should be really efficient so that the operations can run like a well-oiled machine. A streamlined supply chain management reduces operational costs and boosts customer relationship. Here are five functions that include in the global supply chain management: Purchasing This first function of supply chain management involved the procurement of raw materials and other resources that are needed for manufacturing the goods. It involves synchronization with suppliers for delivering the materials without any delay. Operations The operation team basically participates in demand planning and forecasting. Before giving an order for purchasing raw material, the organization has to predict the potential market demand and the number of units required to generate. According to this, it further sets the ball revolving for production, inventory management, and shipping. If the demand will be under anticipated, the organization cannot fulfill the demand of customers that will result in revenue loss.
If the demand will be over anticipated, then it could lead to excess inventory cost. Therefore, the operation function plays an important role when it is about supply chain management. Logistics This function of supply chain management needs immense coordination. As the manufacturing of products has started that requires space for storage until it does not get shipped for delivery. It needs to make arrangements in a local warehouse. For example, the products need to be delivered outside the state, city or country boundaries, it will surely require transportation. It also requires an outstation warehouses. Logistics make sure that products reach the end-point delivery without any problem. Resource Management Technology, labor, raw materials, and time are consumed by any production. However, all the processes should be effective as well as efficient. This function is taken care of by the team of resource management. It decides the distribution of resources in the right activity and at the right time for optimizing the production at a lower price. Workflow of information Sharing and distribution of information are what actually keeps other supply chain management functions on the right track. If there will be poor communication and information workflow, it could split the entire chain and result in mismanagement. To optimize the supply chain of your organization, you can take the help of supply chain management consultants of a well-known consulting firm like Group50. They offer strategic sourcing services and have implemented and designed optimized supply chains in various industries. Due to their wide experience, they are capable to handle supply chains of different sizes and utilize the methodologies that provide effective outcomes. You can collect more details by contacting with this supply chain consulting firm. Visit: www.group50.com