Question

Organizations are increasingly relying on effective supply chains to complete in the global market and networked economy.

Explain the activities or functions of supply china management systems.

Discuss how supply chain management can benefit businesses.

Answer 1

answer-

Supply chain is the very crucial part of a business because it supply chain of organizations helps to allocate resources in such manner so that organization can lower its cost and meet customer's demand by distributing products or services to end customers. when supply chain is effective then it can give competitive advantage to organization like in case of Walmart or Amazon.

the functions or activities which are done in supply chain management system are-

Procurement or purchasing function-

This is the first function of supply chain management. It pertains to procuring raw materials and other resources that are required to manufacture the goods. It requires coordination with suppliers to deliver the materials without any delays.

Operations function-

The operation team engages in demand planning and forecasting. Before giving raw material purchase order, the organization has to anticipate the possible market demand and number of units it needs to produce.

Logistics function-

Logistics refer to the overall process of managing how resources are acquired, stored, and transported to their final destination . This function of supply chain management requires immense coordination. The manufacturing of products has commenced. It needs space for storage until it is shipped for delivery. Logistics ensures that products reach the end-point delivery without any glitches.

Resource Management function-

Any production consumes raw materials, technology, time and labour. However, all the processes need to be efficient and effective. This phase is taken care by the resource management function team. It decides the allocation of resources in the right activity at the right time to optimize the production at reduced costs.

Information Workflow function-

Information sharing and distribution is what really keeps all other functions of supply chain management on track. If the information workflow and communication are poor, it could break apart the entire chain and lead to mismanagement.

supply chain management can give many benefits to businesses because supply chain management helps business to allocate resources in such manner that there is low waste like proper ordering and storing of raw materials so that timely manufacturing can be happened and waste can be reduced.

Supply chain management helps business in improving inventory management to arrest the bullwhip effect and avoid underproduction

Supply chain management helps in meeting customer demands on time because when there is effective and managed supply chain then products or service will reach to customers on time.it also helps in increasing customer satisfaction and increasing customer loyalty like amazon company delivers products on or before delivery time also offer one or two day delivery to prime members.

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