Engr. Bayazid Tanzil, CSCM™’s Post

How supply chain management Help to reduce costs? Effective supply chain management (SCM) is vital for reducing costs and boosting overall efficiency. Here are some established strategies to achieve cost savings in the supply chain: 1. Streamline Inventory Management: - Optimize inventory levels to minimize carrying costs and reduce the risk of stockouts or obsolescence. - Utilize inventory management systems for demand tracking and just-in-time practices. 2. Improve Demand Forecasting: - Align production and procurement with customer demand through accurate demand forecasting. - Use historical data, market trends, and predictive analytics to improve forecast accuracy and prevent overproduction or understocking. 3. Optimize Transportation and Logistics: - Consolidate shipments, employ intermodal transportation, and secure favorable freight rates. - Adopt route optimization software and real-time tracking systems to enhance efficiency. 4. Enhance Supplier Collaboration: - Build strong relationships with suppliers to negotiate prices and engage in joint cost reduction efforts. - Implement vendor-managed inventory systems and establish long-term partnerships to decrease expenses. 5. Implement Lean Manufacturing Principles: - Reduce waste and increase productivity by adopting just-in-time production and value stream mapping. - Streamline operations, diminish inventory, and optimize resource utilization. Effective supply chain management enables companies to eliminate unnecessary costs, accelerate product delivery, and sustain profitability. Credit: Mohammed salih Kakkad

Supply Chain Management? A supply chain is a series of processes that transform raw materials into the final product. Supply chain management is a process by which organisations achieve an efficient and cost-effective supply chain. It can be defined as management of the flow of materials, products and services. It is the centralised management of all the processes, people and organisations involved in a supply chain. How does it help a business? Supply chain management helps in the financial success of an organisation by incorporating all important activities and financial aspects. Along with value creation for their customers, organisations can achieve a better delivery mechanism and cost-efficient products.  Identifying issues before they occur helps in risk management and better forecasts enable a business to meet stretched targets. Reconciliation of demand and supply plans help in effective business planning.  Components of supply chain management Supply chain management begins with the planning of product and ends with its successful delivery to the customer, enabling a route for return of unaccepted or defected products. The components of supply chain management are: Plan, Source, Make, Deliver, Return. Key dimensions Supply Chain Management (SCM) has changed a lot since it was first introduced; it has several internal and external dimensions. Internal dimension includes internal processes related to a supply chain like product design, sourcing, production, transportation, storage, distribution, retail and finances. Internal dimensions can be controlled to an extent. External dimensions include the changes over which a company doesn’t have much control. These dimensions include unexpected changes in the business environment, rules & regulations and weather constraints etc.  Benefits of supply chain management On-time and in-full delivery of products/services Minimum waste and improved efficiency Reduction in cost: operations, warehousing, transportation, etc. Improved customer service Better inventory management Keeps the business ready for changes in market Identification of future risks and opportunities #supplychain #technologyupdates #trending #Auction #Procurement

Supply chain management (SCM) is a critical aspect of modern business operations that involves the orchestration of activities to ensure the efficient flow of goods and services from the point of origin to the end consumer. This multifaceted discipline encompasses the entire lifecycle of a product, from raw material sourcing to production, distribution, and ultimately, delivery to the customer. Effective supply chain management is paramount for businesses aiming to optimize costs, enhance customer satisfaction, and remain competitive in today's globalized markets. One key component of SCM is the integration of information systems to enable real-time visibility and coordination across the entire supply network. This integration facilitates better decision-making, allowing businesses to respond promptly to fluctuations in demand, disruptions in the supply chain, or changes in market conditions. Strategic supplier relationships are another critical element of SCM. Collaborative partnerships with suppliers help mitigate risks, ensure a steady supply of quality materials, and foster innovation. By cultivating strong ties with suppliers, organizations can create a more resilient and agile supply chain, capable of adapting to dynamic market forces. Furthermore, inventory management plays a pivotal role in SCM. Balancing the need to maintain sufficient stock levels to meet customer demand with the goal of minimizing excess inventory is a delicate process. Advanced forecasting techniques and technology-driven solutions assist businesses in achieving an optimal inventory balance, reducing carrying costs and avoiding stockouts. In an era where sustainability and ethical considerations are gaining prominence, supply chain management also addresses environmental and social responsibility. Businesses are increasingly mindful of the environmental impact of their supply chains, striving to implement eco-friendly practices and ensure fair labor conditions. In conclusion, supply chain management is a holistic approach that encompasses various interconnected processes, technologies, and relationships. Its effective implementation empowers businesses to navigate the complexities of today's global markets, respond to dynamic challenges, and deliver value to customers while maintaining a sustainable and responsible approach to operations. #snsinstitutions #snsdesignthinkers #designthinking

Supply chain management (SCM) is the process of planning, implementing, and controlling the operations of a network of interconnected businesses involved in the provision of products and services required by end customers. It encompasses the entire journey of a product or service from its initial design and production to its final delivery to the customer. Key components of supply chain management include: Planning: This involves the creation of a strategy for the entire supply chain, including decisions on sourcing, manufacturing, distribution, and logistics. Sourcing: This involves identifying and selecting suppliers who provide the necessary materials and resources to produce goods or services. Manufacturing or Production: This step involves converting raw materials into finished products through the manufacturing or production process. Logistics: Logistics involves the management of the physical movement of products, as well as information and financial transactions throughout the supply chain. Distribution: This step involves delivering finished products to retailers, wholesalers, or directly to consumers. Retail: This involves selling the products to end customers through various retail channels. Return of Goods: Managing product returns and handling any issues related to defective products or customer dissatisfaction. Objectives of supply chain management Cost Reduction: SCM aims to identify and eliminate unnecessary costs within the supply chain. This includes minimizing inventory holding costs, transportation costs, and production costs through better planning and optimization. Improved Efficiency: SCM seeks to streamline processes and eliminate bottlenecks, making the entire supply chain more efficient. This involves optimizing production schedules, reducing lead times, and improving coordination between different stages of the supply chain. Enhanced Customer Service: Customer satisfaction is a central objective. SCM strives to ensure that products are available when and where customers need them. This involves minimizing stock outs, improving delivery times, and providing accurate and timely information about product availability. Optimized Inventory Management: Efficient inventory management is a key goal of SCM. This involves maintaining an optimal level of inventory to meet customer demand while minimizing excess or obsolete stock. Flexibility and Responsiveness: SCM aims to make the supply chain more adaptable to changes in market demand, technological advancements, and other factors. This includes the ability to quickly adjust production levels, alter distribution strategies, and respond to unforeseen events. Supplier Relationship Management: Developing strong relationships with suppliers is crucial for a smooth and reliable supply chain. SCM seeks to establish partnerships with suppliers, promote collaboration, and ensure the quality and reliability of the inputs. #snsinstitutions #snsdesignthinkers #designthinking

Supply Chain Management, or SCM for short, is a big deal for any business that makes and delivers products. It involves everything from getting raw materials to making the final product and getting it into the hands of customers. This guide will break down what SCM is, why it’s important, and what’s trending in the world of supply chains.

Supply chain resilience is essential in today's ever-changing business environment. Discover how advanced supply chain management systems can strengthen operations against disruptions, optimize inventory levels, and improve efficiency. Our latest blog explores the essential role of #SCM in driving business growth and profitability. 📌 Read our Blog: https://lnkd.in/deQHmpsG #SBS #Supplychain #SupplyChainManagement #InventoryManagement #SupplyChainOptimization

Supply Chain Management (SCM) involves the following three levels: 1️⃣Strategic Level 2️⃣Tactical Level 3️⃣Operational Level 💠Strategic Level At the strategic level, planning is done where the entire groundwork of how the supply chain will work is carried out. Data from various sources is taken and decisions are made keeping in mind the long-term goals of the company. When strategic planning is conducted, every major factor affecting the supply chain such as consumers, suppliers, transportation, company goals, resources, etc. are analyzed, and its use and value determined. At the strategic level, issues that are discussed include: 🔸Choosing the resources 🔸Calculating costs 🔸Establishing customer demand 🔸Product management 🔸Carrying out innovations and experiments to meet customer demand Finding methods to make the chain more effective. 💠Tactical Level After the broader planning where long-term suitability of operations is carried out, at the tactical level, planning on how the short-term goals must be met is done. The short-term goals may include: 🔸Finding new suppliers or engaging with older ones better 🔸Gathering of the required materials and human resources 🔸Creating schedules for suppliers and employees 🔸Ensuring transportation needs are met 🔸Developing methods to synchronize supply and demand better 🔸Looking at warehousing facilities 💠Operational Level At this level, the decisions taken are implemented and the day-to-day operations are managed to fulfil the goals determined during the first two steps. At the operational level, planning, analysis and changes are conducted to keep the supply chain optimised. It needs to be remembered that success at this level heavily depends upon the other two levels. Without effective planning for both long and short-term, operations on a daily basis cannot be improved to reach maximum productivity. The operational level involves the following activities: 🔸Ensuring that supply is consistent and the demand is met 🔸Keeping an account of progress, materials and human resources 🔸Managing materials, operations and human resources 🔸Making sure that waste is reduced/removed.

Supply Chain Management (SCM) involves the following three levels: 1️⃣Strategic Level 2️⃣Tactical Level 3️⃣Operational Level 💠Strategic Level At the strategic level, planning is done where the entire groundwork of how the supply chain will work is carried out. Data from various sources is taken and decisions are made keeping in mind the long-term goals of the company. When strategic planning is conducted, every major factor affecting the supply chain such as consumers, suppliers, transportation, company goals, resources, etc. are analyzed, and its use and value determined. At the strategic level, issues that are discussed include: 🔸Choosing the resources 🔸Calculating costs 🔸Establishing customer demand 🔸Product management 🔸Carrying out innovations and experiments to meet customer demand Finding methods to make the chain more effective. 💠Tactical Level After the broader planning where long-term suitability of operations is carried out, at the tactical level, planning on how the short-term goals must be met is done. The short-term goals may include: 🔸Finding new suppliers or engaging with older ones better 🔸Gathering of the required materials and human resources 🔸Creating schedules for suppliers and employees 🔸Ensuring transportation needs are met 🔸Developing methods to synchronize supply and demand better 🔸Looking at warehousing facilities 💠Operational Level At this level, the decisions taken are implemented and the day-to-day operations are managed to fulfil the goals determined during the first two steps. At the operational level, planning, analysis and changes are conducted to keep the supply chain optimised. It needs to be remembered that success at this level heavily depends upon the other two levels. Without effective planning for both long and short-term, operations on a daily basis cannot be improved to reach maximum productivity. The operational level involves the following activities: 🔸Ensuring that supply is consistent and the demand is met 🔸Keeping an account of progress, materials and human resources 🔸Managing materials, operations and human resources 🔸Making sure that waste is reduced/removed.

In commerce, supply chain management (SCM) deals with a system of procurement (purchasing raw materials/components), operations management (ensuring the production of high-quality products at high speed with good flexibility and low production cost), logistics and marketing channels, through which raw materials can be developed into finished products and delivered to their end customers.[2][3] A more narrow definition of supply chain management is the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronising supply with demand and measuring performance globally".[4][5] This can include the movement and storage of raw materials, work-in-process inventory, finished goods, and end to end order fulfilment from the point of origin to the point of consumption. Interconnected, interrelated or interlinked networks, channels and node businesses combine in the provision of products and services required by end customers in a supply chain.[6] Supply chain management strives for an integrated, multidisciplinary, multimethod approach.[7] Marketing channels play an important role in supply chain management.[8] Current[when?] research in supply chain management is concerned with topics related to sustainability, volatility,[9] and risk management,[10] among others. An important concept discussed in SCM is supply chain resilience. Some suggest that the "people dimension" of SCM, ethical issues, internal integration, transparency/visibility, and human capital/talent management are topics that have, so far, been underrepresented on the research agenda.[11] SCM is the broad range of activities required to plan, control and execute a product's flow from materials to production to distribution in the most economical way possible. SCM encompasses the integrated planning and execution of processes required to optimize the flow of materials, information and capital in functions that broadly include demand planning, sourcing, production, inventory management and logistics—or storage and transportation.[12] Although it has the same goals as supply chain engineering, supply chain management is focused on a more traditional management and business based approach, whereas supply chain engineering is focused on a mathematical model based one.[13] #snsinstitutions #snsdesignthinkers #designthinking