Question

In integrated supply chain management.

Explain how to develop the supply chain strategy and what are elements in it?

Answer 1

Supply chain management is a process which is used by companies to maximise the efficiency and to ensure the quality control.

The five basic components of supply chain are as follows.

1. Plan

2. Develop

3. Make

4. Deliver

5. Return.

1-Plan-

Planning is the first stage of a supply chain. A plan is developed for the actual need of the customer. For a profitable supply chain good planning is very essential. For proper resource management and customer satisfaction supply chains are developed to maintain high profits and correct delivery to the customers.

2-Develop-

Development is the second stage for the supply chain, How the source or the raw material supplier interacts with the company and provide a better service is ensured in this section. It also plans for shipping, delivery and payment. Developing relations with the suppliers is very important as raw material's quality should be constant.

3-Make-

In third stage product is manufactured , packed , shipped and delivered to the customer, This is a manufacturing step hence it plays a big role in the goals of a supply chain because if the production is slow or any part of the making reduces it speed it effects the whole system.

4-Deliver-

Delivery is the fourth part of the process in which the product is handed over to the logistics , The products are distributed with the help of warehouses and payments are collected via invoice system.

5-Return-

Return is the final part of the supply chain in which the customer can return the defective or faulty products and company can raise questions on the same..

Each of above components have their own significance in creating an effective supply chain. Main goals explained above should be strictly followed to ensure the quality and effectiveness of the chain.