What is supply chain management?

The planning and administration of acquisitions, conversion, and logistics management operations are all part of supply chain management. It also handles with the coordination of all parties (from suppliers to customers). It deals with demand management inside a corporation in this manner.

What steps can we take to identify and reduce waste in our supply chain strategy?

The first step is to examine existing processes and determine where waste is still an issue. You may, for example, compare the things you buy to your outcome to prevent expenditures. Talking to relevant managers or operators or solicit further feedback from customers or service suppliers.

What is a global supply chain?

Global supply chains are networks that cross continents and nations to source and distribute goods and services. The mobility of information and resources is one of the most important foundations.

Where do risks exist in supply chain management?

Internal risks (those under your control) and external risks (those that are beyond your control) coexist. In this regard, the following sorts of dangers are identified: Financial hazards Poor planning Regulations Environmental Socio-political Human behaviour

What is procurement in the supply chain?

One of the various branches of the supply chain is procurement. It serves as a structure for a firm to efficiently carry out all of its daily activities, monitoring the outcomes and assessing how the items that will be provided to the clients are made.

What factors contribute to the success of a supply chain?

A good supply chain must have three components: flexibility, data, and long-term planning. In this regard, some of the aspects that impact its correct operation are as follows: Maintain your adaptability. Trust data and technology Plan for the future Remember who is your end customer

What are the benefits of supply chain management?

In a nutshell, it facilitates and improves the movement of products, information, and commerce. Companies benefit from an optimised and efficient business, building better ties with partners and customers.

Why is supply chain planning so important?

Planning in the supply chain helps to simplify operations, enhance productivity, eliminate wasteful spending, and build stronger client relationships. Planning, when done effectively, may assist decrease costs associated with purchasing, manufacturing, inventory management, and transportation.

How can we gain a better understanding of our supply chain costs?

Data analysis is an excellent tool for anticipating and determining where we need to improve. For example, it assists us in optimising warehousing and storage, which is essential in a bigger supply chain strategy. This allows us to optimise space, decrease damage, reduce packing, and do a variety of other things.

What obstacles do organisations experience when attempting to improve SCM?

The supply chain is a difficult process in and of itself, and adding innovations is a problem for businesses. It's critical to move fast and to balance rising customer demand with competitive pricing. In this regard, procurement may also assist to determine whether parts of the supply chain are not competitive or to set more ambitious goals.

Supply Chain Management: Operations, Processes, and Planning

“A goal without a plan is just a wish.”
Antoine de Saint-Exupéry

In today's rapidly changing world, having a plan is the difference between success and failure. The COVID-19 pandemic, as well as Russia's war in Ukraine, have only demonstrated how vulnerable global supply chain management can be.

Companies must stay one step ahead of global circumstances in this ever-changing global market. The supply chain management process, or SCP, comes into play here. It’s the process of organising your business to meet your customers' needs. The goal is to be as efficient and profitable as possible.

“Having a plan is the difference
between success and failure”

Refteck Solutions provides strategic supply chain management to assist you in adapting to this challenging environment. In this article, you'll find a brief idea of how we can assist your business.

We'll look at:

some basic / key points to keep in mind.
steps to define your supply chain management operations, processes & planning.
the example of Tesla and its owned supply chains

Let’s transform your business today

When it comes to procurement and supply chain management, there're two quick but important things to remember:

Adaptability: Your strategy must be able to adapt to an ever-changing market.
Dependability: To increase profits and meet demand, each step must be dependable. From the ordering of raw materials to the delivery of finished goods.

Operations

The supply chain management operations control the entire design of how a company plans, creates, receives, and meets demand products. Fortunately, there're several steps you can take to ensure your company's supply chain management is properly planned.

Relationships with Customers
Customer Care
Demand Controls
Order Completion
Flow of Production
Relationship with the Supplier
Product Creation

1. Relationships with Customers
Building customer loyalty begins with clear communication and a trusting relationship. Suppliers must always be open and honest with their customers about the status of their orders. By putting the customer first, you can ensure that all operations are carried out for their benefit.

2. Customer Care
Customer service issues are unavoidable due to the unpredictability of supply chains. One way to provide a good experience is to improve communication and information delivery between your team and customers. But it's not the only one. It's also suggested:

Simplify the provision of technical and operational support to your customers who require it.
Improve your overall performance and processes to reduce the likelihood of problems occurring.

3. Demand Control
Trying to apply a "standard" procedure when demand is so volatile is a mistake. As a result, planning demand and optimising inventory control are critical steps in this process. This ensures a faster response time and increases the agility of your business. Not to mention that sales and customer satisfaction will improve.

4. Order Completion
Given that users can place orders with a single click on digital platforms, it’s unnecessary to assign staff to handle this step. However, if you don’t implement a strategy to improve and streamline your order fulfilment, you may encounter the following issues:

Excessive use of your shipping materials.
Address redundancies

5. Flow of Production
This step entails determining how much money you have to produce a product. This way, you'll have enough inventory to meet demand while avoiding spoilage and running out of storage space. By properly organising yourself, you can reduce the possibility of shortages due to insufficient orders from your company.

6. Relationship with the Supplier
Remember that your relationship with suppliers must be approached strategically. It must always be beneficial to both parties. The two most important factors to consider are effective communication and the establishment of a solid and clear agreement.

7. Product Creation
The goal of creating a product is to respond to a consumer need with it. You cannot ignore the process of constantly adapting your product to their needs (and that includes branding or packaging). You can't even forget about adding new features that will result in, say, a new version of the product. As society advances, so will your product and brand.

Processes & Planning

Planning
Sourcing
Making
Delivering
Returning

1. Planning
Planning in supply chain management is the first and most important step. To control inventory and the manufacturing process, experts advise planning to match demand with supply. This avoids overspending on warehouse space or running out of raw materials for your manufacturing, both of which slow down product delivery.

2. Sourcing
Sourcing entails having what you want, when you need it, and efficiently responding to your customers' demands. Companies use vendor analysis or purchasing statistics in this way to determine which vendors can provide the goods and services you require... when you require them.

3. Making
This is the stage at which the materials are transformed into products that will meet the needs of your customers. During this stage, businesses focus on assembling, testing, and packing. Furthermore, it is where you can take advantage of customer feedback.

4. Delivering
This is, as you might expect, the most important step in the supply chain. After all, if your product cannot be delivered to your customer, the preceding steps are pointless. It’s recommended that you offer them the following to establish a strong relationship with them:

Details about the order's status.
Ensure that the customer receives the order as expected.

5. Returning
This is another critical point in customer support operations. It’s also known as reverse logistics. A poor returns service can tarnish your brand's image and result in dissatisfied customers. Make sure your users can easily and quickly return items.

The Tesla Case

Although we have previously described how a typical supply chain would operate, there're numerous approaches to supply chain planning. Tesla is an example of this. Elon Musk's company has aimed to change the way vehicles are manufactured in the United States. And how they have designed their own supply chain is a part of this transformation.

In this sense, rather than having a long chain that cheaply supplies them with the various parts they require for their electric vehicles... Tesla has chosen a vertical supply chain. For example, the company manufacture their own batteries for their automobiles. They own the manufacturing plants for their vehicles and don't rely on third parties.

Furthermore, taking advantage of user digitisation, the vehicles themselves receive updates and improvements via cloud technology. So, they even have a digital supply chain!

We're here to help your business

Refteck Solutions provides supply chain management services to help your business thrive. Our solutions are tailored to your specific requirements, resulting in highly innovative, strategic, and cost-effective solutions. Contact us today to learn how we can assist you in developing your supply chain strategy.