If we are going with the definition of the SCM it says, all the inbound and outbound operation in a company termed as SCM. or we can say like SCM is the integration of Sourcing, purchasing, Transportation, warehousing and physical distribution of goods and services. For me SCM is divided into four-part, name as - (SPPD)
Where ‘S’ stands for Sourcing, ‘P’ stands for Purchase, ‘P’ stands for Production and ‘D’ stands for Distribution.
For any business, we should know what are the inflows or outflows, here in this we are the manufacture of pet supplies. I am segregating my work here based the on model (SPPD).
Sourcing - The right supplier of your need
Purchase - Purchase the goods or services at the right price.
Production - Convert your raw material to the finished good, which is qualitative enough to perform in the market.
Distribution - The right product at the right time to the right place at the right price.
If we see all four part 3 part are the internal to the company (SPP) and one part which is external to the company (D). It means our performance will measure by the customer on the bases of our distribution model. Which shows that who we are distributing the goods or services. What is SCM mechanism? Because of all three part (SPP) are internal to you, if they are correct it means you are in a position to play your four-part i.e Distribution correctly.
Sourcing - Main attributes are the right supplier onboard in the system. It is a continuous process and sourcing team should aware from where you get these items.
Purchase - To get the best material in at the optimized price.
Production - Inventory Planning, Convert your raw material to the finished good, packaging, and product should be qualitative enough to perform in the market.
Distribution - The right product at the right time to the right place at the right price.
Imagine you are the manufacture of pet supplies you make a variety of pet supplies list...
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