Branches of Supply Chain Management Assignments

It is a systematic approach of assessment and rectification of supply chain blockages. It manages communication with the suppliers regarding procurement, price negotiation, logistics, and concerns of product material/specification. It is not just about accepting new methods but also trashing the existing redundant policies. Following are branches of Supply Chain Management:

Customer Relationship Management

It is a group of strategies, practices, and technology used by an enterprise to manage customer interaction and store the data to improve customer satisfaction. CRM software has a feature of recording various customer interactions over email, phone, social media, or other channels.

Customer Service Management

It is an invaluable part of SCM, where a representative of the company deals with the queries of the customer. It requires real-time information and a stock record to respond to inquiries of customers. If they couldn’t respond to customer’s queries, then they might lose a potential buyer. The CRM must be prompt and provide an apt response to increasing sales of a product.

Physical Distribution

It is often termed as distribution solely. It includes multiple activities consulted with the supply of finished products. It also includes critical decision making regarding customer service, inventory, materials, packaging, order processing, and transportation and logistics. To reach maximum customers and achieve high sales, the distribution link should be far-reaching.

Procurement

It describes finding a supplier for the required goods, approach for quotation/pricing, and order the goods. Procurement officers have to get the best deal with minimum logistics time and expense. The method of ABC analysis is practiced by the firms having multiple product manufacturing.

Inventory Management

It is the process of managing, ordering, and stacking the stocks properly in the warehouse. The stocks could be raw material, semi-finished products, ready to use products and machine tools. Two practices are widely accepted by enterprises: Just In Time and Material Resource Planning. Both are well efficient ways to manage inventory.

Order Fulfillment

It includes every activity right from the receiving order to shipment. The major activities are receiving an order, checking inventory, and order processing when you receive the order, look for the item number and see if they have demanded it with a unique specification. Note down the number of quantities ordered. Feed the item number in inventory software and find the stack number where it is stored. Inspect the item before dispatch.

Returns Management

It is the part of supply chain management where a product rejected by a customer is managed. The proper implementation of this process within an enterprise can lead to efficient and reverse flow of products. It is also called reverse logistics. It is preferable to store returned items in separate containers to differ between fresh and returned products.

Bullwhip Effect

It predicts the yield supply chain ineffectiveness to manage inventory respective to customer’s demand. The customer behavior of buying is rarely stable, to avoid blockage of funds in an inventory of products having less demand bullwhip effect is observed. In manufacturing, this concept is known as Kanban.

Push V/s Pull

It is a marketing strategy where a product is pushed to a targeted consumer, in a pull strategy, consumers are attracted to buy the products. Here, the goal is to make loyal customers, but marking should be done strategically. In the push technique, general advertising is done. It is suggested when low demand is faced.

Total Quality Management (TQM)

It is a continuous process of eliminating errors in the production process, improving supply chain management, and customer service. It focuses on all the company departments and ushers to improve the overall service and quality of the product. It is somewhat similar to the philosophy of kaizen and six-sigma.

Materials Requirement and Planning (MRP)

It is a computer-based software that manages inventory and plans the order of raw material. This software is designed to reduce paperwork and enhance productivity. The software is designed to study the data of consumption and schedules the order of an inventory item. It can be programmed for showing the exact location of each item in the warehouse.

Demand Management  

It is a methodology to forecast the demand, stock the inventories, and plan the production process as per the prediction. To get an apt demand forecasting, it is imperative to feed unfiltered demand history. It gives an update on all expenditures. It is also called consumption management or strategic spend management.

Product Development and Commercialization  

The development of a product means to launch a new product on the market. The process of development begins with knowing the needs of the consumer. To satisfy that need, an idea is devised by engineers. An idea takes shape in a computer with the help of CAD models; if satisfied with aesthetics, then a prototype is developed. If the prototype can withstand every test, large scale production is carried out along with marketing and promotion.

Time to Market  

It is the time taken from ideation of product to the reach to its end-user. It involves activities research, development, design, analysis prototype, and manufacturing. It varies for all products; for example, TTM is considerably more for a bike compared to a mobile phone. It is dependent on the complexity of a product and manufacturing and government approvals to sell the product (seldom).

Performance Measurement

It is the process of collecting and studying the data on individual, group, department, or machine performance. The result shows how effective is the resource of an enterprise and how much value they deliver against salary or cost incurred. It is the best way to find reasons for low productivity.

Supplier Relationship Management   

It is a discipline of supply chain management where an interaction with a third party (goods supplier) is planned and managed strategically. It aspires to make the mutual growth of both firms. Sometimes business-related sensitive information is shared for the interest of consumers. The supplier summit is an important part of SRM, where all the suppliers are gathered to strategize the supply of raw materials.