The 5 Components Of A Supply Chain Management System

Many rookie business owners typically don't give supply chain management the importance they should. However, little do they know that their products won't reach customers in time without a proper supply chain management system, resulting in lost profits.?

Supply chain management is a difficult task but it can be made easy if you incorporate a few key components. So, on that note, listed below are a few components of a supply chain management system?you should know about.

Planning

Most business owners forget about this, but proper planning is the first essential component of a supply chain management system. Planning will allow you to match your product demand with the supply. You can also use analytics to make this process easier.

Sourcing

The second key component of a supply chain management system?is sourcing products or materials to meet customer demand. These include both perishable and non-perishable goods. However, the coursing time should be less than the days till your inventory replenishes.

Product Manufacturing

Businesses must then manufacture products from procured goods or raw materials according to customer needs and preferences. These include testing, assembling, and packaging the final products.

Product Delivery

After manufacturing and packaging products, the next component of a supply chain management system?is product delivery. After all, customers expect that products reach their doorsteps without any delays. So, businesses must partner up with a suitable courier service to ensure delivery is done in time.

Product Returns

Sure this is an after-sales component of a supply chain management system. However, it has the same level of importance as other components. Businesses need to offer their business excellent return policies to ensure their customers can return defective products without jumping through multiple hoops. This will help companies maintain trust and credibility in the marketplace.

Wrapping Up

At the end of the day, every customer expects professionalism from any company they do business with. Therefore, incorporating the components of a supply chain management system?mentioned in this article will ensure that you have happy customers who trust your business and become long-term customers!