Everything You Need To Know About Supply Chain Management

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’s supply-side activities to maximize customer value and gain a competitive advantage in the marketplace”.

Acquiring Supplies

Acquisition is one of the biggest parts of supply chain management, but probably not in the way you expect. Improving your acquisition process isn’t always about cutting costs. In fact, the first order of business for people working in acquisition departments is to determine other factors, such as:

  • Supply quality
  • Supply fit to business needs
  • Supply functionalities and advantages

Production And Delivery

Much like acquisitions, production and delivery aren’t focused on exploiting workers to maximize production without a worry for the long term of your company. Rather, supply chain managers try to figure out production and delivery solutions that are efficient for all parties involved, and in turn provide sustainable growth.

Planning Is Key

Like any logistical undertaking, good supply chain management relies on proper planning. Think about it like this: if someone asks you how you made it from Frankfurt to London, you’ll probably say you took the plane.

In Conclusion

Supply chain management is a fascinating field, because it equips business owners to improve processes they probably don’t think about too much. From better acquisitions, to properly planning your supply chain, we hope that our article showed you new ways to analyze your business, and improve its day to day activities.

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Philip Keezer

Philip Keezer

I’m Philip J. Keezer, president and founder of management consulting firm Grindstone Capital. Dedicated to hard work, learning, positivity and accountability.