Commentary - (2022) Volume 11, Issue 1
Received: 05-Jan-2022, Manuscript No. iem-22-52942;
Editor assigned: 07-Jan-2022, Pre QC No. P-52942;
Reviewed: 12-Jan-2022, QC No. Q-52942;
Revised: 17-Jan-2022, Manuscript No. R- 52942;
Published:
22-Jan-2022
, DOI: 10.37421/2169-0316.22.11.334.
Citation: Priyadarshini, Veena. “Management Of Supply Chain in Industrial Setting” J Ind Eng Manag 11(2022):334. DOI: 10.37421/2169-0316.22.11.334.
Copyright: © 2022 Priyadarshini V. This is an open-access article distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
The process of managing how goods and services progress from concept creation and raw materials to a finished consumer product is known as supply chain management, or SCM. It encompasses the procedures of moving and storing raw materials, storing finished goods till they sell, and tracking where sold goods go so you may utilize that information to boost future sales. SCM encompasses all aspects of a company's operations, including shipping, purchasing, and information technology. Materials, finances, suppliers, manufacturing facilities, wholesalers, retailers, and customers are all integrated into a single system. Procurement, suppliers, manufacturing facilities, retailers, distributors, and customers all work together through the production, sales, and buying cycles in supply chain management. Because many aspects beyond the control of the business, such as gas costs and environmental conditions, the supply chain necessitates active management. When a corporation is acutely aware of these elements, it is better able to manage them. Inventory, production, distribution, sales, and vendor inventory are all carefully controlled with effective SCM.
SCM evolves as the firm's systemic response to the environment's rising complexity and uncertainty; this complexity forces the adoption of a comprehensive approach to process management. The integration of the supply process into the strategic analysis process exemplifies SCM. It involves/influences strategic decisions and has (or can have) a direct bearing on the firm's competitiveness. SCM is a far broader and more pervasive process than traditional purchasing and logistics. It assumes the function of third parties in assisting the firm's competitiveness and implies cross-border coordination procedures; hence it underpins network management principles. Time and money are two assets that are critical to the success of supply chain management in the manufacturing industry. Though this remark applies to many other businesses as well, in the manufacturing industry, spending your time and money properly is very vital.
Depending on the size of the operation and the severity of the error, a single blunder or setback can cost a corporation thousand or even millions of dollars. Manufacturers must streamline their Supply Chain Management (SCM) — or the systems that assist them make their supply chains as efficient as possible — to avoid these costly or time-consuming mistakes. Manufacturers can also use SCM systems to collaborate with the engineers who design their products, allowing for more efficient communication and production. Hiring a contract company like PBZ to handle most, if not all, phases of the supply chain is one approach to simplify your manufacturing supply chain management.
Manufacturing, like many other industries, is becoming increasingly reliant on technology to complete the manufacturing process. The Internet of Things (IoT) is changing the way manufacturers arrange their operations. The Internet of Things (IoT) refers to any technology that can communicate data via wireless networking without the need for human intervention or urging. Gartner, a leading research firm, forecasted that by 2020, 26 billion devices will use IoT technology. With the rise of digital components and needs in the business world, industrial supply chain leaders must pay close attention to their processes' capacity to operate on these digital networks [1,2].
Improved input consistency
A well-designed supply chain management system will ensure that all product input to the facility is timed and monitored correctly. This prevents warehouses and other facilities from overstaffing when shipments are delayed, as well as understaffing when large orders are received all at once. It also reduces the likelihood of shipments arriving late because fewer errors are produced during the ordering and distribution stages of the manufacturing process.
Simplified communication
By following a predetermined supply chain approach, manufacturing facility employees and management will know exactly who to contact and how to reach them if they have questions or problems. Manufacturers may spend less time communicating and addressing problems and more time designing products and getting them to customers thanks to these simplified and easyto-understand procedures.
Supply chain management maintains the demand-supply balance by involving operations ranging from the procurement of raw materials to the conversion of completed items to assuring timely delivery to the end-consumer. As a result, supply chain management is critical to an organization's survival. It must be efficient to keep the activities going smoothly. Customer connections can be improved, and operating expenses can be reduced with better supply chain management. SCM then emerges primarily as a response to situations involving the development of a pervasive relationship with suppliers, such as selecting a unique type of production process in relation to the expected trend in resource costs; selecting a new plant location in relation to the development of regional logistics and productive infrastructure; and the costs of local resources, among other things. In these circumstances, the supply connection is critical because it has a significant impact on the range of options available, the potential for future technology conversion, and the profitability of new facilities or locations. The intricacy of a make-or-buy decision in such a situation, when the survival of previous decisions or the ability to repair planning errors is far from guaranteed, shows that evaluating options is more a matter of strategic analysis than cost.
Importance of SCM
The impact of supply chain management on business is enormous. Customer service can be immediately improved by good SCM. To satisfy both producers and distributors, the right product in the right amount must be delivered on time. Consumers want to know where they need to go to get the things they want. Customers also expect a high level of customer service. If goods are not delivered on schedule, a company's supply chain management departments must convince customers that they will receive their products as soon as feasible. SCM has a significant impact on a company's bottom line. Plants, warehouses, and transportation vehicles can all benefit from better supply chain management. Because a product is delivered on time and consumers can acquire their items, cash flow is instantly improved. Supply Chain Management (SCM) is a requirement for all societies' foundations.
The foundation of a strong supply chain is effective communication and information transfer in real time. This begins with solid relationships across all supply chain components and ensuring that communication is simple and that all stakeholders are working toward a single goal. Supply chain managers must reduce any delays or inaccuracies in the information that is passed from one chain link to another as information flows backwards from the end-consumer to the provider. To suit everyone's expectations, many modern manufacturers are relying on new technology that can boost order status visibility to both consumers and suppliers in real-time [3-5].
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