Friday, September 2, 2016

The Benefits Of Supply Chain Management

By Eric Howard

There are a number of stages followed by every manufacturer before raw materials become finished goods. Initial stage involves harvesting of raw materials. Movement of raw materials to manufacturers then follows. Manufacturers use their equipment to convert raw materials into goods. They store them and finally distribute them so that they can reach consumers. Supply Chain Management is essential in ensuring smooth movements of goods until they are delivered to consumers.

In case, there is poor movement of products from producers to manufactures, customers bear the burden. This indeed, shows there is need of managing movement so as to prevent innocent customers from being exploited. Logistics, information technology, operation management, procurement and industrial engineering are areas of study that are closely related to SCM. Behavior regulation of traders is accomplished with the help of SCM.

The manner in which manufactures handle their customers, determines how their image looks like. Customers comprehend producers better depending on the way they carry out; production process, distribution and scheduling. Good manufactures ought to come up with strategies that improve their relationships with customers. Any event that they intend to undertake should not only be of benefit to them, but also to customers. Upon capturing good image, concerned manufactures should work hard in order to maintain the already acquired image. This can be accomplished by creating goods, whose quality pleases customers.

It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.

Physical distribution deals with entire process until finished products are delivered to consumers. When goods reach customers the end of marketing process is marked. Proper management of warehousing has a great impact on time required for goods to reach their preferred destination. If warehouses are managed well, expense incurred as goods move to customers is reduced greatly. Good warehousing intends to; diminish manpower cost, dispatch goods, appropriate unloading of goods, efficient offloading processes and storage of goods concerned.

SCM is beneficial in society because it creates jobs. A large number of people are employed especially during distribution of goods to required places. It is beneficial in reduction of pollution within the society. This is possible because production process is managed closely to ensure that it is efficient. Energy consumed is generally decreased because goods are moved easily through improved modes of transport owing to modernization of airports, railway transport and construction of ports.

There are many benefits that are realized from SCM. SCM plays a crucial role in regulating quantity of products being provided to clients. Time of delivery of goods to required destination is also impacted positively by SCM. Indeed, through efficient and well calculated supply chain goods are handled correctly as they move to customers.

SCM is very helpful in helping manufacturers reduce production cost. They guide on most appropriate methods to use during production in order to ensure amount consumed during production process is little. Following correct procedures does not only lower cost of production, but also cost of supplying goods to various customers is reduced.

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