3. WHAT IS SUPPLY CHAIN
MANAGEMENT ?
Supply chain management (SCM)
is management of the flow of goods, data,
and finances related to a product or service,
from the procurement of raw materials to the
delivery of the product at its final destination.
5. PURCHASING
The purchasing function is core to any company.
It provides the materials and resources needed to
create a product.
It is a activity of acquiring goods or services to
accomplish the goals of an organization.
6. MANUFACTURING
It is the production of merchandise for use or sale using labour
and machines, tools, chemical and biological processing, or
formulation.
The term may refer to a range of human activity, from
handicraft to high tech, but is most commonly applied to
industrial production, in which raw materials are transformed
into finished goods on a large scale.
The manufacturing function has received a lot of notice in the
press as companies move various production operations
overseers.
7. INVENTORY MANAGEMENT
Inventory management in business refers to managing order
processing, manufacturing, storage, and selling raw materials
and finished goods.
The objective of inventory management is to provide
uninterrupted production, sales, and/or customer-service
levels at the minimum cost.
The inventory management is a key function of any
manufacturing company, whether domestic or foreign.
8. DEMAND PLANNING
Demand Planning is the process of forecasting customer demand to drive
execution of such demand by corporate supply chain and business management.
Demand forecasting is predicting future demand for the product. In other words it
refers to the prediction of probable demand for a product or a service on the basis
of the past events and prevailing trends in the present.
9. WAREHOUSING
Warehousing is performance of administrative and physical
functions associated with storage of goods and materials.
The warehouse has evolved into a distribution center, and
even a facility to customize the final product via repacking,
labeling or other physical conversion.
Proper handling, storage and management of the products
within these facilities must occur so that customer orders can
be fulfilled with the right product at the right time.
10. TRANSPORTATION
Transportation is the movement of people, animals and
goods from one location to another. Modes of transport
include air, rail, road, water, cable, pipeline and space.
Transport is important because it enables trade between
persons, which is essential for the development of
civilizations.
In todays global economy, this function is even more critical
as its no longer as easy as putting a product on a truck and
having it delivered.
11. CUSTOMER SERVICE
Customer service is the process of ensuring
customer satisfaction with a product or service.
Often, customer service takes place while performing
a transaction for the customer, such as making a sale
or returning an item. Customer service can take the
form of an in-person interaction, a phone call, self-
service systems, or by other means.