SUPPLY CHAIN

MANAGEMENT
NAMA: NUR IERA ILYANA BINTI AHMAD FAIZAL
NO MATRIC: RF201PG004KYM
 WHAT IS SUPPLY CHAIN MANAGEMENT?

• Supply chain management is the management of the flow of goods and services and includes all processes that
transform raw materials into final products. It involves the active streamlining of a business supply side activities
to maximize customer value and again a competitive advantage in the market place.
• There are 5 elements of supply chain management
1. Planning
2. Sourcing
3. Manufacturing
4. Delivery
5. Returning
 HOW SUPPLY CHAIN MANAGEMENT(SCM)WORK?

• This supply chain is to develop and implement an efficient and economical supply chain. The supply chain
covers everything from production to product development to information systems. Usually, SCM tries to
control or link the production of products centrally. With this SCM, companies can reduce costs which is
redundant and can deliver products quickly. This is done with strict control over internal inventory, internal
production, distribution and sales
 DESCRIPTION OF THE 5 ELEMENTS OF
SUPPLY CHAIN MANAGEMENT
1.PLANNING

To get the best results from SCM, the process usually begins with planning to match supply with customer and manufacturing demands. Firms must predict
what their future needs will be and act accordingly. This relates to raw materials needed during each stage of manufacturing, equipment capacity and
limitations, and staffing needs along the SCM process.

2.SOURCING

An efficient SCM process is highly dependent on strong relationships with suppliers. Sourcing also requires collaboration with vendors to supply the raw
materials needed throughout the manufacturing process. In addition, allowing invoice payments for suppliers.

3.MANUFACTURING

It organizes the schedule of activities carried out in the product process, receiving raw materials and product quality testing. The company also measures
quality, output products and employee productivity

4.DELIVERING

Deliver the product to the customer. This distribution process is seen as contributing to the brand image because the customer does not interact with the
product, it includes coordinating orders, scheduling deliveries,, invoicing.

5.Returning

The supply chain management process ends with support for products and customer returns. If there is damage, the customer will return the product and this
chain has to be responsible
 WHY IS SUPPLY CHAIN MANAGEMENT
IMPORTANT?

• Supply chain management is important because it can help achieve several business objectives
for example controlling the manufacturing process can improve product quality.
• Can avoid costly shortages or periods of inventory oversupply.
• Overall, supply chain management provides several opportunities for companies to increase their
profit margins and is especially important for companies with large and international operations
EXAMPLE OF SUPPLY CHAIN MANAGEMENT

• Supply chain management coordinates the various activities required to produce

goods and services to customers. For example, supply chain activities can include
form, packaging or transportation.