Supply chain management is very beneficial as it works on adopting lean principles that reduce waste and improve efficiency. Strategic outsourcing of non-core activities lowers operational costs, and implementing energy-saving practices in logistics and warehousing reduces utility expenses
Framework of supply chain management
1. Strategic Planning
- Vision and Mission
- Supply Chain Strategy Alignment
- Strategic Partnerships and Alliances
- Long-term Goal Setting
2. Demand Planning
- Demand Forecasting
- Sales and Operations Planning (S&OP)
- Customer Relationship Management (CRM)
- Market Analysis and Trends
3. Supply Management
- Supplier Selection and Evaluation
- Procurement and Sourcing Strategies
- Supplier Relationship Management (SRM)
- Contract Management
4. Production Planning
- Production Scheduling
- Capacity Planning
- Lean Manufacturing
- Quality Management Systems
5. Logistics and Distribution
- Transportation Management
- Warehousing and Storage
- Distribution Network Design
- Order Fulfillment
6. Inventory Management
- Inventory Planning and Control
- Just-in-Time (JIT) Inventory
- Warehouse Management Systems (WMS)
- Safety Stock and Replenishment
7. Technology and Integration
- Enterprise Resource Planning (ERP)
- Supply Chain Management Software
- Internet of Things (IoT)
- Blockchain Technology
8. Performance Measurement
- Key Performance Indicators (KPIs)
- Balanced Scorecard
- Benchmarking
- Continuous Improvement
9. Risk Mangement
- Risk Identification and Assessment
- Mitigation Strategies
- Business Continuity Planning
- Crisis Management
10. Sustainability and Ethics
- Green Supply Chain Practices
- Ethical Sourcing
- Corporate Social Responsibility (CSR)
- Waste Reduction and Recycling
11. Customer Service
- Order Accuracy
- Delivery Timeliness
- Customer Feedback Systems
- Return and Refund Policies
12. Financial Management
- Budgeting and Cost Control
- Financial Reporting and Analysis
- Investment in Supply Chain Capabilities
- Total Cost of Ownership (TCO) Analysis