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Supply
Chain Management is the combination
of art and science that goes
into improving the way your company
finds the raw components it needs
to make a product or service and delivers it to customers.
The following are five basic
components for supply chain management.
 Plan
This is the strategic
portion of supply chain management.
You need a strategy for managing
all the resources that go toward
meeting customer demand for your
product or service. A big piece
of planning is developing a set
of metrics to monitor the supply
chain so that it is efficient,
costs less and delivers high
quality and value to customers.
Source
Choose the suppliers
that will deliver the goods and
services you need to create your
product or service. Develop a
set of pricing, delivery and
payment processes with suppliers
and create metrics for monitoring
and improving the relationships.
And put together processes for
managing the inventory of goods
and services you receive from
suppliers, including receiving
shipments, verifying them, transferring
them to your manufacturing facilities
and authorizing supplier payments.
Make
This is the manufacturing
step. Schedule the activities
necessary for production, testing,
packaging and preparation for
delivery. As the most metric-intensive
portion of the supply chain,
measure quality levels, production
output and worker productivity.
Deliver
This is the part
that many insiders refer to as "logistics." Coordinate
the receipt of orders from customers,
develop a network of warehouses,
pick carriers to get products
to customers and set up an invoicing
system to receive payments.
Return
The problem part
of the supply chain. Create a
network for receiving defective
and excess products back from
customers and supporting customers
who have problems with delivered
products.
Find
Out More about Supply Chain Management
and The premise on which we build
these standards at: http://www.supply-chain.org/
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