Comment Segmentation lets companies boost profitability by tailoring their supply chain strategy to each customer and product in their portfolio. Here are 10 key practices that will ensure success.
Plan The first stage in supply chain management is known as plan. A plan or strategy must be developed to address how a given good or service will meet the needs of the customers.
A significant portion of the strategy should focus on planning a profitable supply chain. This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand for their product or service.
A big piece of SCM planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.
Develop Source Develop is the next stage in supply chain management. It involves building a strong relationship with suppliers of the raw materials needed in making the product the company delivers.
This phase involves not only identifying reliable suppliers but also planning methods for shipping, delivery, and payment.
Companies must choose suppliers to deliver the goods and services they need to create their product. Therefore, supply chain managers must develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.
And then, SCM managers can put together processes for managing their goods and services inventory, including receiving and verifying shipments, transferring them to the manufacturing facilities and authorizing supplier payments.
Make At the third stage, make, the product is manufactured, tested, packaged, and scheduled for delivery.
This is the manufacturing step. Supply chain managers schedule the activities necessary for production, testing, packaging and preparation for delivery.
This is the most metric-intensive portion of the supply chain - one where companies are able to measure quality levels, production output and worker productivity.
Deliver Then, at the logistics phase, customer orders are received and delivery of the goods is planned. This fourth stage of supply chain management stage is aptly named deliver.
This is the part that many SCM insiders refer to as logistics, where companies coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
Return The final stage of supply chain management is called return. As the name suggests, during this stage, customers may return defective products. The company will also address customer questions in this stage.
This can be a problematic part of the supply chain for many companies. Supply chain planners have to create a responsive and flexible network for receiving defective and excess products back from their customers and supporting customers who have problems with delivered products.
To ensure that the supply chain is operating as efficient as possible and generating the highest level of customer satisfaction at the lowest cost, companies have adopted Supply Chain Management processes and associated technology.
Supply Chain Management has three levels of activities that different parts of the company will focus on:Exploring the relationship between marketing and supply chain management: introduction to the special issue John T.
Mentzer & Greg Gundlach Received: 8 May /Accepted: 13 May Supply chain coordination – Studies on planning and information sharing mechanisms. Kaipia, Riikka, Helsinki University of Technology, The use of supply chain planning and control tools and techniques has however, been.
moderate, and their use is mainly internal (Olhager and Selldin, ). Join the European SCMS Summit to discover the latest supply chain strategies for achieving faster and more flexible supply chains. We are volunteer organization providing educational resources, informational programs, tours and networking to Supply Chain Professionals in the Chicago area.
[email protected] Supply chain coordination is among the central issues in supply chain management. A.
supply chain is coordinated if all supply chain members adopt the actions that optimize the. entire system’s performance. Learn more about the role of director of supply chain management and how the ASU Online MBA program can help prepare you for this job.