Supply chain management is vital for keeping the mechanisms of supply and demand operating in a smooth manner, so that people can have proper access to goods and services. Supply chain management impacts almost every aspect of society, right from shelter and sustenance to the manner in which people work and entertain themselves. Earlier, Anand Jayapalan had previously discussed how a well-oiled supply chain is vital for maintaining economic stability and a functioning society in the long run.
Supply chain management involves handling the entire process of turning raw materials into final products meant for the end users. Every supplier tends to act as a link that moves a product along a chain of production, right from raw material suppliers and manufacturers to retailers.
Different ways to purchase: Consumers have many choices available to them while making purchases today. For instance, they can now products both online and at physical stores.
Climate-conscious consumers: Consumers have become increasingly aware of the manner in which products are manufactured. A large number of modern consumers today prefer to purchase environmentally friendly products. This essentially impacts the initial stages of the supply chain, where manufacturers are required to incorporate sustainable practices and sourcing in their overall operations.
Evolving trade policies: If manufacturers can’t get raw materials from a certain supplier due to a trade policy, they must be in a position to adapt fast and pivot to a new source for raw materials.
There are a number of important business functions impacted by supply chain management, including:
Product development: This implies the process of introducing and bringing products to the market, and can involve updating or renewing an existing product as well. Product development majorly hinges on the materials available to develop a product, as well as the ingenuity of individuals to engineer, design and determine the purpose and function of a product.
Marketing: Businesses have to stimulate the demand for their products via marketing. Target market selection, product placement, pricing, and packaging, all of it are a part of marketing.
Operations: Making sure that the inner workings of a business are run efficiently is important for reducing expenses and maximizing productivity. The new processes or systems might also have to be integrated with existing processes and systems in the business.
Distribution: This function involves the process of making products available to end-users in business and consumer markets, either through direct or indirect distributors.
Earlier, Anand Jayapalan had discussed how supply chain management sets the foundation for economic growth by facilitating the exchange of goods between businesses and consumers, and hence it is extremely critical in almost all industries.