Question

Name any five of the seven principles of supply chain management, and choose two to discuss in more detail.

Answer 1

Seven principles of supply chain management basically give insights on market connect with the supply chain aspects of company to optimize it and make it more efficient and effective. Some of the important principles are

1: Segment customers according to their needs on services into distinct groups and adapt the supply chain toserve all these categories more profitably

2:-Customize all the logistics network to the service requirements and properly listen to market signals and demand planning .

3:-Differentiate product across market and customers and design the supplychain based on proximity and operations feasibility

4:-Manage all resources of supplychain in an optimised way so that the total landed cost can be reduced as possible.

5:-Develop a supplchain wide technology and enables various cross functions in decision making and strategic support

All principles are equally important however the principles 3 talking more about operational feasibility and supply chain network optimization . Sourcing and delivering or product has to be based on customer centre of gravity.this helps in reducing the cost of storage and distribution. This support customer service level too and overall increase the capability of it. Another important principle is principle 5 were digital intervention and support in supply chain which has significantly making huge impact on entire business operations. The advanced intelligent alert systems, automated ordering and inventory management systems in supply chain helps in reducing the outliers and contingency situation management.