The Basic Guide to Supply Chain Management

Supply Chain Management Concept

Supply chain management is the basic process behind running supply chains to ensure that each product that goes into the shelves of every retail store is delivered in the most efficient way possible. Although there are companies that offer supply chain optimization to provide businesses with a strategic way of organizing their supply chain, it’s still essential to know the basic processes behind it. So, here are the most basic types of supply chain management systems that you might want to know.

Supply Chain Planning System

This system typically provides information to companies to help them plan their supply chain. Some functions of this are providing an accurate estimate of the number of products to be produced in a certain period and deciding the exact location where the goods will be stored. This helps set up the inventory levels of all the materials needed to produce the goods.

Supply Chain Execution System

This type of system provides the information that businesses need to execute their supply chain procedure properly. Its functions include providing the necessary information regarding the status of the orders that are being processed and accurate tracking of shipments and accounting for each of the products that have been brought back. It helps manage the flow of products coming from the suppliers up to when the customers will receive the product.

A thriving business won’t be able to handle everything on its own, especially when it comes to the supply chain. That’s why it’s essential to work with only the best supply chain management partners to help you run your business. You might want to ask them a few questions related to their experience when it comes to handling a larger customer base up to the type of investment that the company expects upfront.