Supply chain management

Supply chain management is a way to link major business processes within and across companies into a high-performance business model that drives competitive advantage. Logistics refers to the movement, storage, and flow of goods, services and information inside and outside the organization.

he Top-level of this model has five different processes which are also known as components of Supply Chain Management.

Plan,

Source,

Make,

Deliver,

Return.

Supply chain logistics plays a vital role in the smooth functioning of businesses and the global economy, supporting the flow of goods worldwide. Implementing effective logistics can help companies build resilience amid global volatility and gain a competitive advantage.

Logistics management involves coordinating activities tied to the sourcing, procurement and movement of raw materials to factories; transforming these materials into finished products; and delivering products to retailers and customers. It includes a range of issues, such as inventory management, warehousing, transportation and distribution, in addition to customer service and returns management.Many companies are looking for ways to better secure the movement of goods across the global supply chain to ensure resiliency amid disruption. But from production planning to the storage of goods to resolving problems for end customers, logistics is a complex feat.

Coordinating supply chain management activities across multiple suppliers, manufacturers and transportation providers working in different regions adds complexity to planning and organization. Additionally, customer demand is ever-changing, which means to adapt to rapidly changing market trends and customer needs can be difficult. Identifying and mitigating risks, including supplier reliability, transportation disruptions and geopolitical factors, leads to challenges.