A supply chain is the connected network of individuals, organizations, resources, activities, and technologies involved in the manufacture and sale of a product or service. It starts with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer. SCM oversees each touch point of a company’s product or service, from initial creation to the final sale. With so many places that can add value through efficiencies or lose value through increased expenses, proper Supply Chain Management can increase revenues, decrease costs, and impact a company’s bottom line.
Supply Chain Management
Supply Chain Management attempts to centrally control or link the production, shipment, and distribution of a product. By managing Supply Chain Management, companies are able to cut excess costs and deliver products to the consumer faster. This is done by keeping tighter control of internal inventories, internal production, distribution, sales, and the inventories of company vendors. Supply Chain Management is based on the idea that nearly every product that comes to market results from the efforts of various organizations that make up a supply chain. Although supply chains have existed for ages, most companies have only recently paid attention to them as a value-add to their operations.
Supply Chain Management as a Service
Specialization within the supply chain began in the 1980s with the inception of transportation brokerages, warehouse management (storage and inventory), and non-asset-based carriers, and has matured beyond transportation and logistics into aspects of supply planning, collaboration, execution, and performance management.
Market forces sometimes demand rapid changes from suppliers, logistics providers, locations, or customers in their role as components of supply chain networks. This variability has significant effects on supply chain infrastructure, from the foundation layers of establishing and managing electronic communication between trading partners to more complex requirements such as the configuration of processes and workflows that are essential to the management of the network itself.
Supply chain specialization enables companies to improve their overall competencies in the same way that outsourced manufacturing and distribution has done; it allows them to focus on their core competencies and assemble networks of specific, best-in-class partners to contribute to the overall value chain itself, thereby increasing overall performance and efficiency. The ability to quickly obtain and deploy this domain-specific supply chain expertise without developing and maintaining an entirely unique and complex competency in-house is a leading reason why supply chain specialization is gaining popularity.
Outsourced technology hosting for supply chain solutions debuted in the late 1990s and has taken root primarily in transportation and collaboration categories. This has progressed from the application service provider (ASP) model from roughly 1998 through 2003 to the on-demand model from approximately 2003 through 2006, to the software as a service (SaaS) model currently in focus today.
About The Supply Chain People
The Supply Chain People is a consultancy firm providing services in Change/ Transformation Management and end to end Supply Chain Management domain to customers ranging from big MNCs to startups. Dedicated to facilitating business opportunities for customer firms or startups by sourcing resources needed by them. Our undertaking is to work as a catalyst and enable our customers across the industries to clearly define and achieve their business goals through a range of wide services.
We are a diverse team of people who offer services like Best Cost Country Sourcing, India Sourcing, Market Research, Business Development and Optimal Procurement Solutions. We also provide essential Supply Chain Support – Strategic and Operational, India Sourcing Support for MNCs, Transformation Project Management, New Product Development, Training and Talent Development including identification of right talent in and out of the organization and any customer-specific requirements.
Our commitment is to enable our customers in transformation journey as a trusted partner and deliver value through innovative, effective, efficient, sustainable and unique tailor-made end-to-end procurement and supply chain solutions as per customer requirements.
What we do
• Strategic Supply Chain Support
• Operational Supply Chain Support
• India Sourcing Support
• Transformation Project Management
• Talent Management and Development
• New Product Development
• Sales Support
• Customer Specific Requirements
How we function
Supply Chain Management is a cross-functional approach that includes managing the movement of raw materials into an organization, certain aspects of the internal processing of materials into finished goods, and the movement of finished goods out of the organization and toward the end consumer. As organizations strive to focus on core competencies and become more flexible, they reduce their ownership of raw materials sources and distribution channels. These functions are increasingly being outsourced to us where we perform the activities better or more cost-effectively. The effect is to increase the number of organizations involved in satisfying customer demand while reducing managerial control of daily logistics operations. Less control and more partners led to the creation of the concept of supply chain management. Our purpose is to improve trust and collaboration among supply chain partners thus improving inventory visibility and the velocity of inventory movement.