DISCUSS THE VALUE/SUPPLY CHAIN IN RELATION TO THE BUSINESS

ENTERPRISE

Supply Chain Management can be described as the managing and distributing

the goods and services that starts with the origin of the goods and ends with
the consumption of the commodity. This also involves the transportation and
storing of raw materials used in research in progress, procurement, and
professionally finished items. The main objective of supply chain management is to
monitor and link the production, distribution and delivery of products and services.
That can be achieved by businesses with a really strong and secure control on
internal inventories, manufacturing, delivery, local development and sales.

Throughout the figure above, we can see the movement of products, commodities and
knowledge from the manufacturer to the customer. The photo demonstrates the transfer
of the drug from the supplier to the buyer, who forwards it to the seller for shipping. The
manufacturer, in effect, delivers it to the wholesaler or seller, who then distributes the
goods to various shops from where the consumers can conveniently buy the items.
Production chain accounting basically incorporates supply and demand control. This
requires various methods and techniques to see the whole chain and to function effectively
at any phase of the chain. Each unit involved in the project will strive to reduce costs and
help businesses enhance their long-term efficiency, while at the same time generating
value for its partners and consumers. This method will often reduce prices by reducing
needless costs, motions, and handling. Here, it should be remembered that supply chain
management and supply chain event management are two separate subjects to
remember. The Supply Chain Event Management shall recognize conditions that can
conflict with the operation of an effective supply chain; potential outcomes shall be
considered, and strategies shall be formulated accordingly.

Eight Key-Processes of Supply Chain Management

These are the crucial processes in business that supply chain management
takes place:
1. Customer Relationship Management (CRM) – It would allow businesses
to target their advertisement/marketing efforts to specific client segments
depending on the long-term importance of each category to the business
or the supply chain.
2. Customer Service Management – It is a multi-business, centralized
communication network for clients, complaints, queries, and feedback.
3. Demand Management The method aims to coordinate supply and
demand through the whole value chain by identifying consumer needs and
implementing an action plan in anticipation of the actual customer
purchase.
4. Order-fulfillment – This includes making, carrying out, distributing and
servicing consumer orders with on-the-spot support.
5. Manufacturing Flow Management – It means that the tools required to
flexibly manufacture and transfer goods through a multi-stage
manufacturing cycle are available for companies in the supply chain.
6. Supplier Relationship Management - This offers institutional help, in
particular to high-value vendors, for establishing and sustained strong
relationships to benefit from production gains.
7. Product Development and Commercialization – It promotes
collaborative production and promotion between supply chain member
organizations with innovative goods and services.
8. Returns Management – This allows businesses to better control quantities
of the inventory recovered while reducing associated costs.