Supply chain management has become an integral part of eCommerce businesses. Commonly known as SCM, supply chain management basically deals with the management of the flow of services and goods. Supply chain management involves management of various processes and components which includes inventory management, the storage and movement of raw materials and movement of final products from the origin point to the consumption point. And for the seamless flow of the products, proper management is required at each level.
In other words, it can be said as designing, planning, managing and execution of activities of the supply chain from the point of manufacture to the end customer. Providing the goods from one place to another undamaged and within budget is not the only objective of SCM. Another main objective of SCM is to create value across the supply chain by forecasting the demand of products effectively, streamlining various processes, and using advanced technologies the right way. The functions of supply chain management are many that help in the effective flow of various business processes.
Below are some of the main functions of supply chain management:
Aligning Flows
As information, materials and money are shared between suppliers and customers, supply chain management system keeps these factors flowing up and down the supply chain.
Integration
Integration is necessary to coordinate communications in order to provide effective as well as timely results. It involves connecting the activities of logistics, operations and purchasing so that businesses can put the focus on the goals that benefit the entire performance. It may also include advanced technical processes or new software for better communications.
Operations
The management of day-to-day activities in an eCommerce business falls under operations. It may include providing marketing approaches, keeping an eye on inventory etc.
Purchasing
Purchasing function deals with the management and purchasing decisions such as such as purchasing source material, raw material etc.
Distribution
This involves management of logistics across customers, retailers and wholesalers. From keeping an eye on order details to sending of shipments, distributing is another important function of supply chain management.
Apart from these key functions, there are other functions of that make the business processes effective. The other functions may include:
- Coordinating processes
- Designing complex systems
- Managing resources
However, in order to enjoy good results from supply chain management, it is extremely necessary for you to understand the basics and manage it in the proper manner. Proper planning and right implementation are the keys to reap the benefits supply chain management offers.
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