Lakhasly

Supply Chain Management (SCM) is referred to as synchronisation of various processes. The processes entail from connecting with suppliers who are responsible for providing products, services and information so that quality product is availed by the customers. It is a network of transportation and warehousing processes that ensures the procurement, distribution and movement of materials from the point of origin to the point of consumption. Supply chain is an integral part of the organisation as it ensures the product is readily available at the apt time at the point of consumption. In today’s context, the supply chain forms the backbone of the organisation without which it would be arduous for organisations to survive. Globally, organisations are expanding their reach beyond international boundaries and redefining the manner in which demand and supply are handled.

A network of different companies engaged in producing, handling and/or distributing a particular product is known as a supply chain. An efficient supply chain benefits customers by reducing the incidence of stockouts and providing the assortment of merchandise as required. This, in turn, leads to higher sales, higher inventory turnovers and lower markdowns for retailers.

Every organisation aims to satisfy its customers in the best possible manner. In order to serve customers better, an organisation needs to make timely and undisruptive availability of products and services. Organisations need to formulate that SCM resources, raw materials, and components are gathered and organised for producing finished products to be delivered to end customers on time. Effective SCM makes sure that products are delivered to customers on time by smooth flow of goods and related information. SCM endeavours the profitable progress of organisations by timely processing of customer orders and meeting their expectations.

Logistics is that part of the supply chain process that plans, implements and controls the efficient, effective storage and flow of goods, services and related information from the point of origin to the point of consumption to meet customer requirements. SCM includes logistics but has a more comprehensive and strategic perspective, including inventory management and vendor relations. It may also include new product development.