Supply Chain Management

 Companies must plan and manage all the resources needed to meet customer demand for their product or service. They should also design the supply chain and then determine which metrics to use to ensure the supply chain is efficient and effective. 

This means the people who choose companies to provide the goods and services needed for their product. After signing the contract, managers use management processes to monitor and manage the relationship between the two parties. The main processes of this section include ordering, managing inventory, and obtaining authorization for controlling payments.

Supply chain managers always consider the necessary activities for raw material acceptance, product production, quality testing, packaging, transportation, and delivery schedule as important principles. Most companies evaluate the quality, level of production, and productivity of workers to ensure that the company produces products that meet market-accepted standards.

This is commonly called logistics, including the coordination of customer orders, scheduling of delivery, shipment, customer invoice, and receipt of payments. It relies on vehicles to deliver products to customers. Many organizations outsource large parts of the delivery process to specialist organizations, especially when the product requires special reviews.

 The supplier needs a responsive and flexible network to return defective, surplus, or unwanted products. If the product is defective or does not meet the customer’s standards or the surplus of what is ordered, ‌ is delivered to the customer, it must be returned to the warehouse for inspection.  

 For better efficiency, the supply chain needs to monitor information throughout the chain and ensure compliance with all regulations. The processes of this stage include finance, human resources, information technology, facilities, portfolio management, product design, sales, and quality assurance.