Best Practices for Implementing Supply Chain

The supply chain management consists of network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product or service.

The following are the steps for implementing a supply chain management process in a business

• The first step is to carefully study and understand the organization's suppliers, market share, structure and the distribution networks. Set the vision, strategic and the operational objectives which are realistic and achievable.
• After planning the next step is selecting the supply chain execution (SCE) system according to the needs. The planning of the organization and decision regarding the selection of the SCE is taken by collecting the information from the partners of the supply chain like vendors, wholesalers and the retailers.
• Next step in the process is selection of the right team for the implementation of the system perfectly and the team selected should be a cross functional with the personnel from manufacturing, customer service, receiving, inventory control, quality assurance, logistics/transportation and shipping.
• Before implementing the system it should be tested and the supply chain execution implementation project should have farther reaching effects than just supply chain, so it is critical that every system that has an interface to or from the supply chain execution package is considered when developing the test plan.
• The personnel involved in operating the system should be trained and the most thoroughly tested system can fall apart if users are not trained enough.
• The right timing and support is needed for the perfect execution of the system and this support is to be given by the top management to the execution team. Continuous monitoring of the system is required and if the system does not work in the direction as expected, the mistakes should be corrected and the system should be reimplemented.

Supply chain management involves handling of various processes, therefore correct implementation of the supply chain management system only ensures success to business.

Relation Between Logistics and Supply Chain Management

A supply chain is a distribution network that performs the functions like procurement of raw materials from the suppliers and these raw materials are converted in to the final products at the production sites. Then these finished products are transferred to ware houses from there to the distributors and retailers and finally delivered to the customers. SCM is the process of planning and management of all activities involved in sourcing and procurement, conversion and all logistics management activities. The domain of the supply chain management is characterized in such a way that it needs to be cross functional which focuses on the development of relations between partners in the supply chain process, it needs to include all activities for managing interactions with customers and suppliers.

Logistics for a business includes physical distribution, material handling, packaging, warehousing, freight transportation, sales order processing, inventory planning and production planning. Logistics management is that part of SCM, which in order to meet customer requirement plans, implements and controls forward and reverse flow and storage of goods, services between the point of origin and the point of consumption. Logistics involves getting in the right way, the right product, in the right quantity and right quality, in the right place at the right time, for the right customer at the right cost. Logistics play an important role in the coordination of the activities in the entire supply chain, product development and commercialization of the products. Logistics also contribute to the returns management process.