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Supply chain is the network of product flow from among the traders to the last customer. The whole industry world is challenged with the new management term supply chain. Students pursuing a degree should have a detailed knowledge of how the entire process of raw materials to consumable goods is produced. With us, you get the best learning opportunity along with homework help.
What is it all about?
Supply chain is the theory of the entire circulation of raw materials to finished products till it reaches the end customer. In this competitive society, industries have to fight for existence. They need to maintain the quality of product with the price and develop their receptivity in the market. Supply chain management is the most important tool used to scale down the cost.
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Importance:
The aim is to deliver the goods at the fastest possible time. Advanced concepts of supply chain management focus on product flow, transportation, the detailed route to be travelled, planning of product distribution network, and execution of proper strategy to survive in the competitive marketplace.However, the correct way to do supply chain management is a continuous increasing list.
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Major areas:
- Decisions have a crucial role to play in supply chain management. There are a few things that demand a firm decision making. Like-
Where the location is?
How the complete process of production to distribution is going to take place, largely depends on the geographical location.
What to produce?
Decisions on what material to produce have the ultimate influence on the product stability, pricing and availability at the consumers’ level.From recruiting the suppliers to delivery in the market, all needs to be decided on.
Managing the inventories-
Another challenge for the supply chain managers are managing the inventories. An organization often has to maintain a balance between the demand and supply of products with the help of inventories.
Transportation, a key focus-
The organization, has to take a clear decision on the mode of transportation. Based on factors like inventories, location, market demand, etc., a planned route map is drawn out.
- Deduction in cost is another vital part. There are various methods to cut down the cost like poor quality, rigid control on production, minimising manpower, etc. But the best technique that supply chain management follows is excluding the services with no value.
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