Supply chain management is a crucial entity in any manufacturing, storage, or distribution enterprise. The success of such a business depends on proper supply chain management processes that facilitate planning, procurement, and distribution of goods. Supply chain management processes are pegged on 6 key areas and terminologies as hereby explained.
Logistics in supply chain management implies the different range of activities surrounding the planning and executing of circulation of products to and from a factory and a warehouse. Logistics basically involve the transportation and warehousing of products and materials.
2. Supply chain sustainability
Supply chain sustainability focuses on the various issues surrounding supply chain processes including the environmental, social, economic, and legal issues. A sustainable supply chain management process should be lean by way of reducing any potential negative consequences on any of the 4 areas mentioned above.
3. Supply chain traceability
The traceability of supply chain processes involves the ability of supply chain managers to identify and track components that form part of a final product. Traceability in supply chain management involves different parties, including producers, distributors, and consumers.
4. Supply chain visibility
Supply chain visibility offers businesses an opportunity to obtain valuable information that can help them to accurately track products across the entire supply chain process. The visibility of supply chain processes can be accurately determined through the use of supply chain management software that tracks the real-time position of materials and products in the market.
5. Supply chain planning
Supply chain planning involves the maintenance of a perfect balance between the supply and demand of materials and products in the market. The accuracy of such planning involves forecasting of the future to ensure that adequate supply of materials in factories and manufacturing outlets facilitate the adequacy of supply of products in the markets.
6. Inventory management
Inventory management is a process by which a business keeps track of the products and materials going in and out of its warehouses or factories. Accurate inventory management gives a business an overview of how lean and efficient its inventory management processes are. It tracks stored items in the warehouse, keeps track of what is on the factory floor, what is in the market, and what is in transit.