Question

Assess with clear examples; any five decision areas in the supply chain to which every supply chain manager should pay attention ?

Answer 1

The supply chain is the most crucial p[art of any business operation. Supply chain management is related to the activities starting from the production of goods to its reaching the final end-users. It passes through many steps before reaching its ultimate customers and due to this reason, a proper and efficient supply chain is needed. It basically works on the principle of supply and demand theory. Supply chain management basically ensures that the goods are supplied in an uninterrupted way. So, for this smooth functioning, the managers should have to be always been careful that all the steps in the supply chain perform its functions without ant interruption. For this, they have to take certain decisions in those critical areas to ensure a smooth supply. The managers have to take certain decisions regarding the product's availability to the ultimate customer.The five decision areas are as follows-

1.Smooth inflow of Materials- This is the most vital part of the supply chain where the managers have to ensure that the goods are received at the user end with out any hazel. For this they have to ensure that the goods are stored in proper ware houses and from there, it is transported to the wholesaler or retailers and then to the customers. Example- In case of fragile or perishable goods the mangers have to ensure that there is proper warehousing facilities located near production unit or the things may get damaged.

2. Proper flow of data or information required for production and delivery- There should be proper information available regarding that of quotations pricing, invoice, Purchase orders billing since according to these documents only the products are manufactured , stored , transported and delivered. Without these document's proper management , the supply chain will run in to a mess.

Example- For an order of the customer for product A first there will be a purchase order slip and a number will be generated. The product A is then stored ina ware house and a slip is printed and with that slip it is transported ,despatch details are furnished to the customer or retailer and finally the thing is delivered.

3. Transporatating the goods- This is a very hectic task as it involves many types of risks also. If the goods are of fragile nature proper transportation have to be arranged otherwise it will be the liability of the company to pay the damage. Thsy also have to design a network of routes on which the goods are transported so that they may be transferred with out any problem. They have to consider the geographical location of the place, the security of that place, the law and order of the place before designing the transport planning.

4. Warehousing of goods- The decision regarding the warehousing is totally dependent on the nature of goods that is to be transported. The more the complicated the products the more special warehousing system will be required.

ex- Some one ordered a plaster of Paris statue, this good have to be warehoused very carefully due to its nature than any apparel.

5. Retuning of goods by consumers- The managers also have to ensure a smooth returning policy if the goods are rejected by the customers. Those goods again have to be stored and then transported back if they are rejected. A smooth system of retuning of goods and documentation regarding that will be appreciated by the customers.

example- Suppose anyone returned some apparels dueb to some manufacturing defects. Those goods have to be again taken care of by the supply chain management.