Explain five functions that are performed in any successful supply chain.
The five major functions of a supply chain management are explained as below:
The supply chain management pertains to procuring raw materials and other resources that are required to manufacture the goods. It requires coordination with suppliers to deliver the materials without any delays. This is a big part of the supply chain management for the business. The cost of raw material, the quality, quantity as well as the time of procurement is a big function of Supply chain management in the business.
The supply chain management is part of the process that makes the business do its internal survey for the future like getting the idea of the demands, the best way to procure it as well as the ways the operational need for the future is calculated to get the supply chain to have the best of material at the most competitive price to be brought in time that would support the production.
The best of the ways to make the material reach from the source to destinations the biggest aspect of the supply chain. Hence the space for storage, cost of handling, etc get affected with the logistics working at a slow pace. So the logistics are responsible to make sure the material reaches the destination on time as it’s supposed to be for the best of cost and supply chain functions.
4. Resource Management
The way the supply chain uses the resources it has like the vehicles, cost of operations, time, use of people for the process are all part of the supply chain resource management. The optimal production at the most competitive price is the goal of the business where the supply chain has a big role to play.
5. Information Workflow
Information sharing and distribution is what keeps all other functions of supply chain management on track. The more the real-time information is received the more smooth the supply chain operations are. So the use of Information technology enables real-time monitoring and best value from the supply chain for the business with the use of information in real-time with the most efficient IT use.
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