Supply chain management is one of the fields of business. The most crucial thing in any business is to keep the whole process in a perfect flow. For proper management of the whole process, you can see a separate supply chain management department in every company. The employee working at this post ensures that everything moves in the proper flow. The process starts with the collection of raw materials. That raw material is passed to other stages. In the end, the final product is supplied to potential customers. This article at Vaca20 aims to discuss all supply chain management.
1. What is Supply Chain Management?
Supply chain management is all about the proper organization of goods and services. In a business, there can be different types of products. Every business offers a new product as per the demand of the customer. The services related to each product also vary from one area to another. Supply chain management plays a significant role in revenue generation. If a company remains successful in good management, it can get an edge in the industry. It works well to satisfy the customer. The budget also goes with the fewer outflows of cash. Less cash outflow and more cash inflow are best for any company.
2. What are the two main Types of Supply Chain?
According to a firm providing coursework writing services, there are two main types of supply chain management. Every task must include two functions. Like other tasks, the supply chain has two types based on its function. These types are mentioned below:
- Supply Chain Planning Systems: The first function of a supply chain is planning for the whole procedure. Without planning, there are more chances of facing failure in the results. The risk factor increases significantly, and no company wants to work with high-risk factors. In this type of supply chain, you need to work on product forecasting. Also, cost estimation and storage of goods have great importance.
- Supply Chain Execution Systems: In this type of supply chain, the execution of a plan is done. It covers the delivery of products and their monitoring as well. Furthermore, it works to restore, repair, and maintain products.
3. What are the Four Stages in Supply Chain?
The process of supply chain management includes four stages. These four stages are mentioned below:
- Supply Management
- Supply Chain Management (SCM)
- Supply Chain Integration
- Demand-Supply Network Collaboration
Let’s have a look at a brief explanation of these stages.
The first stage is supply management. This stage provides a foundation for to rest of the stages. The simplest explanation of this stage includes all of the documentation work required for the whole process.
Supply Chain Management (SCM)
The second stage of a supply chain is supply chain management. In this stage, you need to cover the development of relations between all the workers involved. You have to share data among all workers and make reports on it.
Supply Chain Integration
All of the information related to your product and service is needed here. Based on the collected information, strategies are made, and the risk factor is calculated. The interaction of all workers is necessary at this stage to accomplish the goal.
Demand-Supply Network Collaboration
All workers make a network through effective collaboration. Some people work on planning, while others work on its execution. So, they make a network. At this stage, the flow of data is smooth throughout the network.
4. What are the Six Most Common Models of Supply Chain Management?
For having a clear understanding of supply chain management, you can get assistance from its models. The understanding of models gives you a clear path for planning and execution. There are six models of supply chain management. These models are named as below:
- The Continuous-flow model
- The Fast chain model
- The Efficient chain model
- The Agile model
- The Custom-configured model
- The Flexible model
A brief explanation of these models is necessary to get the best out of the supply chain.
The Continuous-flow model
Based on your product, you have to see if a continuous model of supply chain management is suitable or not. This model works well if your organization’s product type remains the same. There can be minor changes in the manufacturing of products, but the overall domain remains the same. Through this model, you can work on the customer’s demand, including high efficiency and low prices.
The Fast chain model
The fast chain model is best if you have to work on different product types. The demands of customers evolve with time. The organization which ensures new demands can use the model of the fast chain.
The Efficient chain model
This model aims to work for better forecasting of the whole process. The use of this is widespread in almost all organizations. It covers storage, production, and supply of material efficiently.
The Agile model
This model of supply chain management works for the following aspects:
- For a particular product
- For small targets only
- Require professionals in supply chain
The Custom-configured model
This model covers agile as well as continuous flow models. The Custom-configured model aims to work in small batches in a short duration of time.
The Flexible model
Of the six supply chain models, the flexible model is the best one. It works well in high and low demand of the product. This quality makes it best in the field of supply chain management.
Supply chain management needs critical evaluation at every stage. If you are working in this department, you have to focus on strategies and the material available and required. Also, you have to work for the production and supply of material. The strategies must revolve around a low budget with reasonable control.
Arslan Shah is a professional author based in Manchester. He has completed his Bachelor’s Degree in Economics from the University of Manchester. He is currently living in the UK and working as a content writer at CheapEssayWritingUK. His job role allows him to provide students with unique and high-quality editing and proofreading services on any subject. He loves to guide students in writing quality essays and structuring them for the best results.