BASICS OF SUPPLY CHAIN

The 5 Basic Supply Chain Management Components 

Plan :
this is the strategic portion of supply chain management. A company must have a plan for managing all the resources that go toward meeting customer demand for products or services. A big pieces 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 customer. 


Source :

The companies must carefully choose a really reliable supplier so that they can delivers goods and services on time. The company also must develop a set of pricing, delivery, and payment processes with suppliers and create metrics for monitoring and improving the relationships.

Make : 

This is the step where companies manufacture their products or services. This can include scheduling the activities necessary for production, testing, packaging, and preparing for delivery. This is by far the most metric-intensive portion of the supply chain, measuring quality levels, production output, and worker productivity.

Deliver : 

Commonly referred to as logistics. Logistics is the set of processes that plans for and controls the effective transportation and storage of supplies from suppliers to customer.Companies must be able to receive orders from customers,fulfill the orders via a network of warehouse,pick transportation companies to deliver the products,and implement a billing and invoicing system to facilitate payments.


Return :
this is typically the most problematic step in the supply chain. Companies must create a network for receiving defective and excess products and support customers who have problems with delivered products.




EXAMPLE COMPANY THAT USED SCM