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Supply Chain Management (SCM) in detail (hindi) and simple language || E-commerce ||Akant 360

Introduction

Supply Chain Management (SCM) is the core of Commerce and E-commerce. To understand this, let’s consider an example. Suppose you have wheat bread this evening. You might feel like eating it every day, but today you have a difference of opinion. What would happen then? First, you would need to get wheat, and you would think about where to get it from. From the market, you would bring it home, filter it, and then make bread from it.

Let's elaborate on how the wheat reached your hands:

  1. Farmer's Role:

    • The farmer grows and waters the wheat.
    • After harvesting, the wheat is threshed, and hulls are removed.

  2. Market Processors:

    • Professionals in the market further process the wheat.

  3. Retailers:

    • Finally, the processed wheat reaches the stores where you can buy it.

This sequence embodies the principles of SCM which involves managing the entire process from procuring raw materials to delivering the final finished product to the customer.

Key Principles of Supply Chain Management

  1. Demand Forecasting:

    • Understanding the customer's demands and planning accordingly.

  2. Vertically Integrated Partnership:

    • Partnering with suppliers to ensure that all necessary materials are acquired.

  3. Procurement and Inventory Control:

    • Deciding from where to procure materials and managing the inventory to meet future demand.

  4. Logistics:

    • Managing transportation to ensure timely delivery.

  5. Product Life Cycle Management:

    • Handling products from their creation to their end, including dealing with expiry dates and recycling.

  6. Pricing and Preferences:

    • Setting prices and ensuring that goods are distributed and sold efficiently.

Steps in SCM

  1. Customer’s Order:

    • When a customer places an order, the demand is recorded.

  2. Production Planning:

    • Planning production based on demand and ensuring raw materials are available.

  3. Inventory Management:

    • Maintaining inventory to ensure there is no shortage.

  4. Distribution:

    • Shipping the product to distributors and retailers.

  5. Final Delivery:

    • Ensuring the product reaches the customer, maintaining efficiency and minimizing delays.

Advantages of SCM

  • High Efficiency:
    • Improved efficiency in the process.
  • Reduced Costs:
    • Decrease in operational costs.
  • Improved Output:
    • Quicker response times and increased business volume.
  • Customer Satisfaction:
    • Timely availability of products leads to happier customers.

In summary, SCM helps in managing the flow of goods from suppliers to customers, involving various stakeholders such as farmers, processors, retailers, and customers. The goal is to maximize efficiency and customer satisfaction while minimizing costs and delays.

Keywords

  • Supply Chain Management (SCM)
  • Demand Forecasting
  • Vertically Integrated Partnership
  • Procurement
  • Inventory Control
  • Logistics
  • Product Life Cycle
  • Pricing and Preferences
  • Customer Satisfaction

FAQ

  1. What is Supply Chain Management (SCM)?

    • SCM involves managing the entire process from procuring raw materials to delivering the final product to the customer.

  2. Why is Demand Forecasting important in SCM?

    • It helps in understanding and planning for customer needs, ensuring the availability of products.

  3. What is the role of Logistics in SCM?

    • Logistics ensures timely transportation and delivery of products from suppliers to customers.

  4. How do Inventory Control and Procurement work together in SCM?

    • They ensure that materials are acquired timely and that inventories are managed to meet future demands.

  5. What are the benefits of effective SCM?

    • Increased efficiency, reduced operational costs, quicker response times, and higher customer satisfaction.

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