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supply chain management

According to commercial studies, supply chain management is the investigation of flow of products and services which also includes the storage and movement of raw materials, finished goods and work in progress of inventories starting from point to point consumption. Supply chain management also involves integrating and coordinating these type of flows along with the companies as well this helps them to achieve the ultimate objective or purpose by reducing the inventories supply. For some successful supply chain management, the work of sophisticated software systems is required which can be of some better competencies with some better Web-based application service providers, in short, it is known as ASP. ASP is the ones who promise the companies that they will get part or all supply chain management services who will rent their services at once.

In other words, supply chain management is also defined as the designing, control, planning, monitoring and executing all the supply chain activities with the accurate purpose of building a competitive infrastructure, creating a perfect net value with demand and measuring the global performance. The practice of supply chain management is being drawn heavily from the systems engineering, logistics procurement, information technology, industrial engineering and others, these type of industries basically strives for some integrated approaches. There are some marketing challenges as well who play an important role in this supply chain management system. According to some current research in the supply chain management system are totally concerned with the topics which are commonly related to risk management and certain sustainability.

Supply chain management is a type of cross-functional approach which basically includes the managing the spontaneous movement of raw materials in the market or in some organizations as well. There is some certain point of internal processing of turning the raw materials into finished goods as well as the movement of these finished goods helps the organization to produce the materials required by the end users. The main effect of supply chain management is to increase the demand for organizations who are helping to increase their customer satisfaction base while they are busy in reducing their daily logistics operations. Because if there is less control then there will be more supply chain partners who will, therefore, lead to the creation of the concept of supply chain management. The main motive of supply chain management is to improve the collaboration and trust amongst the supply chain partners which will help in improving the visibility of inventory plus the speed of the inventory movement as well.

Now we will also learn that how a supply chain management actually works by following these below pointers which are:-

  • Warehousing
  • Demand Planning
  • Supply Chain Sustainability
  • Material Requirement Planning
  • Just In Time Manufacturing
  • Total Quantity Management
  • QRM
  • Six Sigma



Warehousing is the act of storing goods and other types of products which will be used for sales and distribution, warehousing is not only concerned with the storage facility it is also concerned about the various activities like identifying, receiving, preparing and assembling which are required to meet the demand. They are mainly two different kinds of warehousing they are as follows:-

  • Public Warehousing
  • A public warehousing is being totally operated and governed by the professionals as they can provide their services to as much as many large numbers of organizations. They are charging the fees for the organizations only. An Organization mainly requires the use of warehousing while keeping in view about the freight rates and proper view of the location. In this type of warehousing kind, there is no type of fixed investment involved in it. Here the fixed costs are broadly distributed amongst the users of the warehouse. In this kind of warehousing the managerial control is totally limited.


  • Private Warehousing
  • A Private warehouse is being totally leased and owned by a firm themselves, and here the firm has complete control of their warehouses. A private warehouse is being used when the firm has the requirement of some special storage and handling needs. An organization or firm uses their warehouses when their products are being moved into some large areas. And normally any types of private warehousing is used by the firms or organization when they have a high volume of goods which are needed to for storing at better conditions and places.

There are some important functions of the warehousing as well they are as follows:-

    1. Receiving Good – The important basic function of the warehouse is to receive goods and store them accurately. When the goods or products are being handed over to the warehouse by the producer, the warehouse in charge accepts the goods and takes the responsibilities of delivering the goods to the production house of the company when they are required. Here the warehouse in charge receipts the number of goods stored in the warehouse and gives it to the producer this helps the company to keep in the account of the goods which are stored in the warehouse.


    1. Preparation Of Record – After receiving the goods the warehouse keeper or the in charge checks and each item for the shipment and records them accordingly. All the records are being maintained in an accurate way so that at the time of delivery no complications will arise.


    1. Identification – After the products or goods are received properly, the warehouse keeper starts to mark each item distinctively. Here the keeper uses tags or some sorts of code number so as to identify the items separately. Due to this valid identification, the warehouse keepers can identify that which goods or items belong to which firm.


    1. Storing – One of the major function of warehousing is storing the goods properly as the goods are being kept in the warehouse safely. That is why today all types of seasonal fruits are available all the time due to these warehouses. Each warehouse keeps a proper protection for each good which is being stored here.


  1. Packing – The availability of packing of the goods are also there in the warehouse facilities, and it is normally provided by the general housekeepers as they are the only ones who pack the goods in a reasonable way accordingly by the quantity and size of the goods which are required for proper delivery to the firms.


Demand planning

Demand Planning is the process which helps in understanding the futuristic predictions about the demands for the goods which helps in calibrating the distribution and production capabilities accordingly to it. Every part of the manufacturing is stated responsible for estimating the actual demands for their product and services available in the market. This line of action helps them to manufacture the exact amount of products and set them for some further activities like the supply of raw materials, distribution and more production capabilities, etc. this type of responsibility really gears up for the need of service demand.

According to any type of organization, demand planning acts as a strategic role for planning the different products which are involved in the functions of different businesses this requires the timely data management. Precise processing of the data and follow the agreement according to the joint business plans which mainly runs along with the supply chain system. There are different kinds of software available in the market which helps in the effective demand planning, these types of software both helps in saving money and time. One of the most widely used software for demand planning is the Excel Spreadsheets and such other ERP items like the use of Oracle, SCM and SAP have the procedure of some better demand planning functionalities present in their suites of software.


Supply chain sustainability

Supply Chain Sustainability is a type of business flaw which keeps on affecting the Organization’s logistics network or supply chain in terms of waste costs, risk, and some environmental issues.  There is a growing requirement for making some sound choices for the integrating environment which mainly focuses on the supply chain management system. The sustainability in the market of the supply chain is increasingly seen amongst the high-level executives who are becoming essential for delivering some long-term profitabilities, and these situations have almost replaced the monetary cost. Speed and value. This has become one of the dominant topics of discussion amongst the supply and purchasing professionals. It has been seen that sustainable supply chain seizes most of the value required for the creative opportunities which offer some significant competitive advantages for some early process innovators and adopters.

There are mainly three tiers of sustainability they are as follows:-

    1. Getting the Basics Accurate – This is one of the most basic levels of the stage where the majority of some business firms are at. The companies even employ some simple adjustable measurements like the self-service technologies like the centralized teleconferencing and procurements.


    1. Learning to think sustainably – This is the second level where some companies start to realize that they need some embedded sustainability into the supply chain operations. The companies even tend to achieve this type of level when they try to assess their impact across some local range of operations. According to the terms of supply chain, this can involve product design, supplier management, manufacturing rationalization, and some distribution optimizations as well.


  1. The Science Of Sustainability – The third tier is all about the uses of supply chain sustainability benchmarks and auditing so as to provide a perfect framework for governing the supply chain management systems properly. This gives the profound clarity according to the environmental impact of adjustments towards the supply chain cost, flexibility, and agility in the supply chain network. Moving towards this third tier means flowing with the same current where the companies are able to recognize the cost savings through some green operations as it is significant for both governmental level as well as for the industry levels too.


Material requirement planning

Material Requirement Planning or in short popularly known as the MRP is a type of inventory control and production planning system. This helps in integrating the data from the production schedules from the inventories so as to calculate the shipping and purchasing schedules for the components which are required to build a product completely.

There are mainly three functions of the Material Requirement Planning system they are as follows:-

  1. The MRP helps in ensuring whether the products are available for productions and all the necessary goods are available in the market for the customers so as to avoid any kinds of shortages.
  2. The Material Requirement Planning helps in reducing the appropriate wastes by maintaining the only lowest possible materials and the production levels which are already present in the stock.
  3. The MRP system helps in following up the purchasing and delivery schedules plus helps in planning the functions of manufacturing properly.

When the MRP is performing its duty, it normally tends to reduce the waste of the materials plus controlling any types of product shortages as well. But still, there are some major problems for the successful functioning of the  MRP system, here the data which are being fed into the system should be absolutely correct or else then there will be some sorts of serious complications may arise regarding the stock and production.

The Material Requirement Planning was introduced by the famous engineer named as Mr. Joseph Orlicky, and it was developed by him for the response towards the Toyota Production System which is somewhat the famous model for some lean production system. The first computerized Material Requirement Planning system was tested in the year of 1964 successfully by Black & Decker.


Just in time manufacturing

Just In Time or in short known as the JIT Manufacturing is all about the strategy which is being followed by the companies so as to increase the efficiency and decreasing the wastage of the goods which are being received. This helps in reducing the inventory cost of the of the entire production process. But this procedure requires the producers to forecast the demand in an accurate way.

This inventory supply helps in representing a shift away from the other type of case study where the producers used to carry large amounts of inventories when higher demands were required to be met appropriately. In this type of manufacturing, there is both advantages and disadvantages which need to be looked after properly. So let us see what are the advantages and disadvantages of JIT. They are as follows:-


The control named as JIT has many advantages over the traditional models which were being followed at earlier times. Here the production run times remained short which is meant that the manufacturers can simply move from one type of product to another similar type easily. Whereas this procedure of Just In Time helps in reducing the costs by eliminating the requirements of the warehouse storage. Nowadays after applying this procedure companies tend to spend less money than earlier times on raw materials because they buy the appropriate raw materials which are required by them, so there is no question arises for storage anymore.


The disadvantages of JIT inventories mainly involve the disruptions which are present in the supply chain system. Here if the supplier of any raw material is unable to deliver any goods or raw material within the time period due to any sorts of technical issues, then the supplier is able to shut down the entire production process. A sudden disclosure of the production process may affect the delay in delivering the expected goods which will create some more delay to produce finished goods towards the clients.


Total quantity management

Total Quantity Management mainly consists of the organizations where they push the effort in making the organization work in a climate where the organization can improve its abilities to deliver some high-quality products and services to its clients in a proper way. The efforts of TQM draws heavily on the previously developed tools of the quality control system. During the late 1980s and at the beginning of the early 1990s TQM enjoyed some widespread attention. Then after the ISO 9000, Six Sigma and Lean Manufacturing they started to overshadow the whole scenario.

The framework of Total Quantity Management is totally based upon the belief that a proper well-versed organization will be able to build some long-term success by having all its members starting from highest ranked executives till the low leveled workers present in the Organization. TQM was mainly developed so that they can improve the delivering quality and the base of customer satisfaction. But TQM needs the full focus from the organizations for the continuous improvement over the long term periods than simply emphasizing about the short term financial gains of the organization.

There are some series of ways and procedures for the organization to accomplish the path for the extreme improvement and for the successful plus continuous growth of the organization in a focused manner by the use of some normal strategies, effective communication, and processing of data. This helps in instilling the discipline and quality of the organization’s processes and different cultures.


Quantitative risk management

QRM is all about increasing the goals for the client’s risk-adjusted returns, and this helps in developing the industries leading risks management principles models and other practices. This helps in providing the knowledge to the clients that what are the basic requirements for the effective tools to adopt certain innovations. Since the last 20 years, QRM has being made some partners with the clients so as to enhance their abilities to measure risk and identifying the probable opportunities which will help them in making some sound decisions.  This is another type of scientific approach towards the business firms when they are increasingly becoming critical according to today’s world because each and every organization needs to satisfy their stakeholders who demand high potentiality from the organization.

Even it has been seen that the government regulators are insisting other organizations to show some clarity in their works so as to make their client base more strong and even regarding about the amount of capital each financial institutions are holding. There are some project managers who are looking some effective QRM who will be able to guide them in giving proper decisions so that they can analyze their applicable risk data so that they can forecast both the negative and positive effects perfectly. The process of QRM helps in yielding some higher quality information which becomes easily accessible for the relevant members of the organizations.

This also helps the decision makers to act more effectively by taking help from the techniques of the QRM so as to decrease the total amount of guesswork which is involved in the daily decisions of the business operations. Thus the techniques of the QRM allows the organizations to obtain some valuable insights to avoid some possible risks, and this helps them in estimating the overall exposure of their entire controls.


Six sigma

Six Sigma is mainly about the set of tools and techniques which are only made so as to the improvement of different processes in each organization. This method was mainly introduced by Mikel J Harry & Bill Smith when they were working with the company named Motorola since the year of 1986. John made this method as the central to his company which is General Electric for some better business strategy in the year of 1995.

This technique or method helps in improving the quality of the output process by removing and identifying the exact causes of minimizing and defects of the variability found in business and manufacturing processes. This method uses a set of some quality management methods like the statistical methods and empirical methods which help in creating a special kind infrastructure for the people who are in the organization.

One of the main or fundamental objectives of the Six Sigma method is that it helps in implementing a measurement-based strategy which focuses only the improvement of the process and about the variation reduction by the help of some business applications. There are many Six Sigma methodology which is still in use for the quality improvement of several industries as well as for other business organizations too. The consultants of Six Sigma is all over the world have developed many other procedures so as to implement the Six Sigma Quality and mainly it is based on some of the similar change management applications and philosophies of tools as well.

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