A lot happens before raw materials are converted to finished goods. After raw materials have been harvested, from their natural settings, they need to be transported and stored before they are taken to industries from where they are changed into finished goods. Finished goods are moved from manufactures to final consumer after having gone through wholesalers and retailers. Supply Chain Management plays a great role in ensuring that flow of goods and services are managed well in order to reach consumers in a good way.
Proper organization is beneficial in ensuring, there is order as raw materials move to manufactures where they are changed into more useful goods. Supervision of entire process is beneficial because it lowers time wastage and promotes efficiency in entire process. SCM promotes acceptable norms of handling goods and services as they move from producers to consumers. There is a very close relationship between SCM and fields such as; industrial engineering, procurement, logistics, information technology, operation management and information technology.
Reputable manufacturers handle and treat customers well. They produce goods that satisfy their customers fully. Most importantly they set prices that are affordable to customers, who consume their goods. This is the main reason why reputable manufacturers will always prosper and beat those who produce sub-standard goods. Proper SCM comes up with strategies that make manufacturer unique, with intention of attracting more customers to buy more products from them. Having attracted customers, the concerned manufactures should practice practices that will help them retain the already attracted customers for the good of the firm.
It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.
Physical distribution deals with entire process until finished products are delivered to consumers. When goods reach customers the end of marketing process is marked. Proper management of warehousing has a great impact on time required for goods to reach their preferred destination. If warehouses are managed well, expense incurred as goods move to customers is reduced greatly. Good warehousing intends to; diminish manpower cost, dispatch goods, appropriate unloading of goods, efficient offloading processes and storage of goods concerned.
SCM is beneficial in society because it creates jobs. A large number of people are employed especially during distribution of goods to required places. It is beneficial in reduction of pollution within the society. This is possible because production process is managed closely to ensure that it is efficient. Energy consumed is generally decreased because goods are moved easily through improved modes of transport owing to modernization of airports, railway transport and construction of ports.
SCM has a positive impact on customer service. Process ensures that right quantity of products is delivered to consumers within required time. Products are made available to customers in right location for the betterment. SCM promotes provision of after sale services of high quality to customers for better results.
SCM is very helpful in helping manufacturers reduce production cost. They guide on most appropriate methods to use during production in order to ensure amount consumed during production process is little. Following correct procedures does not only lower cost of production, but also cost of supplying goods to various customers is reduced.
Proper organization is beneficial in ensuring, there is order as raw materials move to manufactures where they are changed into more useful goods. Supervision of entire process is beneficial because it lowers time wastage and promotes efficiency in entire process. SCM promotes acceptable norms of handling goods and services as they move from producers to consumers. There is a very close relationship between SCM and fields such as; industrial engineering, procurement, logistics, information technology, operation management and information technology.
Reputable manufacturers handle and treat customers well. They produce goods that satisfy their customers fully. Most importantly they set prices that are affordable to customers, who consume their goods. This is the main reason why reputable manufacturers will always prosper and beat those who produce sub-standard goods. Proper SCM comes up with strategies that make manufacturer unique, with intention of attracting more customers to buy more products from them. Having attracted customers, the concerned manufactures should practice practices that will help them retain the already attracted customers for the good of the firm.
It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.
Physical distribution deals with entire process until finished products are delivered to consumers. When goods reach customers the end of marketing process is marked. Proper management of warehousing has a great impact on time required for goods to reach their preferred destination. If warehouses are managed well, expense incurred as goods move to customers is reduced greatly. Good warehousing intends to; diminish manpower cost, dispatch goods, appropriate unloading of goods, efficient offloading processes and storage of goods concerned.
SCM is beneficial in society because it creates jobs. A large number of people are employed especially during distribution of goods to required places. It is beneficial in reduction of pollution within the society. This is possible because production process is managed closely to ensure that it is efficient. Energy consumed is generally decreased because goods are moved easily through improved modes of transport owing to modernization of airports, railway transport and construction of ports.
SCM has a positive impact on customer service. Process ensures that right quantity of products is delivered to consumers within required time. Products are made available to customers in right location for the betterment. SCM promotes provision of after sale services of high quality to customers for better results.
SCM is very helpful in helping manufacturers reduce production cost. They guide on most appropriate methods to use during production in order to ensure amount consumed during production process is little. Following correct procedures does not only lower cost of production, but also cost of supplying goods to various customers is reduced.
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