3. Production: Raw materials are converted into finished products through manufacturing processes. Production efficiency and quality areined, and control over the supply of raw materials and finished products is kept under control.
4. Distribution: The finished product is delivered to the customer through the chosen method, such as land, sea, or air transport. Delivery is tracked to ensure the product arrives on time.
5. Sales: The product is promoted and sold to the customer. Good customer service is provided, and the relationship with the customer is continuously managed.
6. Returns: Product returns from customers are received and processed. A refund or product exchange is done, and the reason for the return is analyzed to improve product quality.
7. Information: Data about supply chains are collected and analyzed to help companies make better decisions. This information is also shared with other parties in the supply chain to improve efficiency and collaboration.
These processes are interrelated and interdependent. The smoothness and efficiency of one process will affect the other. Therefore, it is important to have an integrated and well-coordinated SCM system.
Some factors that can affect the SCM process include:
- Demand: Fluctuating demand can cause problems in planning and production.
- Supply: Disruptions in the supply of raw materials can cause production delays.
- Technology: The use of new technologies can improve efficiency and visibility in the supply chain.
- Regulations: Government regulations can affect SCM processes, such as environmental and trade regulations.
To an effective SCM, companies need to:
- Have a clear and measurable SCM strategy.
- Build strong relationships with suppliers and logistics partners.
- Applying the right technology to improve efficiency and visibility.
- Having a competent and experienced team in SCM. By implementing effective SCM, companies can increase efficiency, increase customer satisfaction, increase competitiveness, and minimize risk.
