In general, the supply chain starts with
Options:
A) a distributor
B) final customers at the retail store
C) research and development
D) the provider of basic raw materials
The Correct Answer is option D) the provider of basic raw materials
Answer Explanation
Supply Chain Management
The supply chain is the process of delivering a product from the raw materials to the consumer. Supply planning encompasses product planning, demand planning, sales and operations planning, and supply management. Supply chains include every stage of the production, distribution, and sale of commercial goods, from procurement of materials to manufacturing. A company’s ability to compete depends on successfully managing its supply chain.
A company’s fulfillment of customer orders is so dependent on an efficient, optimized supply chain. But when managed correctly, it can also lead to much lower costs and a faster production cycle. As far as supply chain management is concerned, it covers product development, sourcing, production, procurement, logistics, and more. The result could be a reduction in customers, and a loss of competitive advantage for companies.An efficient supply chain will work with an efficient returns process. The way the return process is handled has been found to boost customer retention by 71%.
In SCM, it’s not just about creating an efficient process; it’s also important to minimize risks and ensure everything runs smoothly. The supply chain comprises so many elements, from manufacturing sites and warehouses to transportation, inventory management, and order fulfillment. Each step of this process involves countless risks and the potential to derail an entire customer order. The time of day goods are moved, the length of time inventory is held, and the dispatching process can all have a huge impact on the operation. A chain can fall apart from the very beginning without an optimized SCM process.
Components of Supply Chain Management
Planning
To meet customer demands for a product or service, plan and manage all resource inputs. Determine metrics to measure whether the supply chain is efficient, effective, delivers value to customers, and meets company objectives when it is established.
Sourcing
Identify the suppliers who will provide the goods and services needed to create the product. Develop a process for monitoring and managing supplier relationships. Among the key processes are ordering, receiving, managing inventory, and authorizing supplier payments.
Manufacturing
The activities involved in accepting raw materials, manufacturing products, testing for quality, packaging for shipping, and scheduling deliveries will all be coordinated.
Delivery and Logistics
Coordinate customer orders, schedule deliveries, dispatch loads, invoice customers, and collect payments.
Returning
Create a system or process for returning defective, excess, or unwanted products.
MBA,BBA.
I am Smirti Bam, an enthusiastic edu blogger with a passion for sharing insights into the dynamic world of business and management through this website.
I hold a MBA degree from Presidential Business School, Kathmandu, and a BBA degree with a specialization in Finance from Apex College,