Supply Chain - How It Works
By Sabrina Whetham
A supply chain is a system of organized people, technology, activities, information and resources that are involved in moving a product from the supplier to customer. This is a complex and dynamic supply and demand network that assists in the finished product in order for it to be delivered to the customer. According to the Council of Supply Chain Management Professionals, this management is the planning and management of all activities involved in sourcing, procurement, conversion and logistics management activities. They integrate function with primary responsibility for linking major business functions and businesses with other companies to create a high performing business model.
The term supply chain management was developed in the 1980s to express the need for integration in key business processes from the users to the suppliers. By implementing this management successfully it can lead to a new kind of competition on the global market. The main purpose of SCM is to fulfill the customer's demands through the efficient use of resources including things like distribution, capacity, inventory and labour.
A big part of a supply chain is the regulations involved in security. This is to ensure that the global and local regulations are being met. Some of the new regulations for SCM, this is the importer security filing, and there was also revisions made to the certified cargo screening program. Another important part of SCM is the development and design of it. Product design provides a different role by providing attractive features to generate demands. In other words, it is the ability of the product design that helps generate the demand of satisfying customer's expectation. The product designs affect the supply chain through manufacturing, transportation, quality, quantity, production schedule, material selection, production technologies, product policies, regulations and laws. This is because it helps drive the structure of the supply chain when it is done effectively.
Overall, supply chain management is all the things that go into providing quality and quantity of products to the consumer. This is done through many things like, research, distribution, and the schedules, laws and product management that go into getting the goods from one place to another. Which in return provides evidence based practice that takes the quality of the produce design into consideration, to ensure that it is getting the consumers hand effectively. It also is done through the research that goes into it, to ensure the best quality product in order to satisfy the customer.
Freight Transportation works with the Supply Chain.