Question

Explain each stage of the supply chain and how current trends are effecting each stage.

Answer 1

Supply chain management is a process in which management of inflow and outflow of goods and services, involving movement and storage of raw materials, inventory and movement of finished good from point of origin to the point of consumption. Stage of the supply chain are-

1.PLANNING – Planning is the strategic part of the supply chain management process, in which the objective is to find out a best possible solution to how to obtain the final product. SCM managers should identify a list of key components like plant location & size, warehouse designing, delivery models, etc. If the product is not manufactured in-house, then they have to make a decision to buy it from a supplier.

In this developing world and cutting-edge technology, it is very difficult for the organization to make a decision on whether to manufacture the product or to purchase directly from the supplier. This thing will be affecting the decision.

2. SOURCE – At this stage of supply chain management, the emphasis is on to ascertain the most reliable of suppliers for raw materials so that production process would never harm. In this stage the organization will be working with the network of different suppliers, so they have to make sure that raw material comes on time so that the production cycle is unaffected.

At this stage manager has to choose an effective and efficient supplier who will be supplying all the material time and that too at a competitive price.

3. EXECUTE – This is the stage where well-designed processes are implemented to existing plans in the form of manufactured products which are ready for testing, packaging, and delivery. At this stage, the organization manages rules of performance, data that will help in analysing some parameters and regulatory compliance.

At this satge, the manager has to keep a look at the market competition as well, to understand the market demand and competition available and accordingly developing the product.

4. DELIVER – Supply chain when reaches this stage, the managers have a task at hand to deliver the product/service in the right quantity, at the right place and right time by employing suitable carriers. Supply chain managers should be fully equipped with modern IT tools to keep a track on warehousing networks, inventory models as well as invoicing and payment receipts.

At this stage, the organization has to develop a software that will be tracking each and everything and this will be a challenge for the organization and they might have to take some external help.

5. RETURN-

At this stage, the organization receives defective goods and managers has to identify the product condition, authorise the return, replacement or refund or the product. At this stage, the organization should establish some rules regarding the replacement of the product or refund process.

At this stage, most importantly the manager has to establish some guidelines on which the refund and the return policy will be working.