Agility is not only about being faster to reach the goals than your competitors. Along with being faster it includes better preparation and executing processes with ease and velocity. A supply chain is one of the toughest and complex processes that require higher skills to be developed by a company to manage supply. An agile supply chain refers to the responsiveness, flexibility, competency, and quickness of a supply chain that operates daily. Agile supply chain management provides an organization with increased productivity and efficiency along with avoiding storage and eliminating excessive stocked inventories. It’s important to know the components of supply chain management before knowing the processes of it as the component provides a clear view of why the process is to be adopted.
Important components of the supply chain management
Planning-Firstly an enterprise must plan for the required supplies and products. This helps in accurate and detailed analytics. This will help in figuring out the capital, labor, and partners needed to fulfill the expected demand.
Sourcing-It helps in managing the supplies. For example, for any important component enterprise must have more than one supplier in case if one missed the requirement on time other will help in fulfilling it.
Manufacturing-This step is for all companies, including those who partially, or completely buy the finished products. As this plans of demand, inspect, a package for shipment and delivery of goods or products.
Delivery– Delivery is the last step in supply chain management. An enterprise must plan carefully to meet the timelines promised with customers and avoid issues. This planning involves invoice and payment collection.
Returns-Sometimes products are sent back by customers due to various reasons and then the product gets in the reverse supply chain. It needs to be planned from replacing or refunding to scrap or sending back the product to inventory.
The supply chain management consists of 8 essential processes
Based on the demand plan company shares the requirement in the purchase order form with a supplier and ensures the received quantity and timeline of it.
Once goods are purchased one must plan production ensuring the demands must be met with their capacity. They should track in-progress and completed goods.
It should manage the input and output items from inventory and ensure the less possible holding cost.
It involves sorting and prioritizing the orders to the desired destination. It also tracks the products shipped to customers.
Being similar to inventory it also tracks the product workflow through a warehouse. The only difference is it manages the manufactured goods or products which are shipped to customers.
It involves continuous communication with customers regarding their products. From the start of their request to delivery or sometimes, refunding or replacement.
It plans the effective returns and still the satisfaction of the customer with refunding or replacement.
Supply chain performance tracking
Overall SCM must also be observed for proper implementation and further required improvement.
If observed above process, SCM provides a total solution to the enterprise with its start-end well planned and agile product processed.