A lot happens before raw materials are converted to finished goods. After raw materials have been harvested, from their natural settings, they need to be transported and stored before they are taken to industries from where they are changed into finished goods. Finished goods are moved from manufactures to final consumer after having gone through wholesalers and retailers. Supply Chain Management plays a great role in ensuring that flow of goods and services are managed well in order to reach consumers in a good way.
Proper organization is beneficial in ensuring, there is order as raw materials move to manufactures where they are changed into more useful goods. Supervision of entire process is beneficial because it lowers time wastage and promotes efficiency in entire process. SCM promotes acceptable norms of handling goods and services as they move from producers to consumers. There is a very close relationship between SCM and fields such as; industrial engineering, procurement, logistics, information technology, operation management and information technology.
Reputable manufacturers handle and treat customers well. They produce goods that satisfy their customers fully. Most importantly they set prices that are affordable to customers, who consume their goods. This is the main reason why reputable manufacturers will always prosper and beat those who produce sub-standard goods. Proper SCM comes up with strategies that make manufacturer unique, with intention of attracting more customers to buy more products from them. Having attracted customers, the concerned manufactures should practice practices that will help them retain the already attracted customers for the good of the firm.
It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.
Physical distribution is concerned with the manner in which completed products are moved to customers. Marketing normally ends at the customer. In other words, physical distribution is essential in linking marketing channels to clients. Under this area, warehousing administration is also promoted. This is intended to reduce expenses of the company. Warehousing administration is concerned with; minimizing manpower cost, storage of goods, dispatching goods, unloading goods in the required area and also offloading them.
SCM is advantageous in society because many jobs are created. A good number of people acquire employment during distribution of products and services. Process contributes greatly in pollution reduction. When transportation of goods from producers to customers is managed well, energy consumption during this time is reduced. Less energy is used when goods are moved through modernized airports, ports, railways and improved roads.
Customers cannot be satisfied with goods delivered to them if they are substandard. Goods should be in right quantity and of required quality. Most importantly, manufacturers ought to ensure that information provided on the packaging is accurate and it reveals true information concerning content inside the packaging.
SCM promotes efficiency as goods move from producers to consumers. Efficiency enhances reduction in production cost. Supply chains that are efficient minimize time required to move goods, hence minimizing chances of production being shutdown. Cost required, when supplying goods is minimized and this is advantageous to customers.
Proper organization is beneficial in ensuring, there is order as raw materials move to manufactures where they are changed into more useful goods. Supervision of entire process is beneficial because it lowers time wastage and promotes efficiency in entire process. SCM promotes acceptable norms of handling goods and services as they move from producers to consumers. There is a very close relationship between SCM and fields such as; industrial engineering, procurement, logistics, information technology, operation management and information technology.
Reputable manufacturers handle and treat customers well. They produce goods that satisfy their customers fully. Most importantly they set prices that are affordable to customers, who consume their goods. This is the main reason why reputable manufacturers will always prosper and beat those who produce sub-standard goods. Proper SCM comes up with strategies that make manufacturer unique, with intention of attracting more customers to buy more products from them. Having attracted customers, the concerned manufactures should practice practices that will help them retain the already attracted customers for the good of the firm.
It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.
Physical distribution is concerned with the manner in which completed products are moved to customers. Marketing normally ends at the customer. In other words, physical distribution is essential in linking marketing channels to clients. Under this area, warehousing administration is also promoted. This is intended to reduce expenses of the company. Warehousing administration is concerned with; minimizing manpower cost, storage of goods, dispatching goods, unloading goods in the required area and also offloading them.
SCM is advantageous in society because many jobs are created. A good number of people acquire employment during distribution of products and services. Process contributes greatly in pollution reduction. When transportation of goods from producers to customers is managed well, energy consumption during this time is reduced. Less energy is used when goods are moved through modernized airports, ports, railways and improved roads.
Customers cannot be satisfied with goods delivered to them if they are substandard. Goods should be in right quantity and of required quality. Most importantly, manufacturers ought to ensure that information provided on the packaging is accurate and it reveals true information concerning content inside the packaging.
SCM promotes efficiency as goods move from producers to consumers. Efficiency enhances reduction in production cost. Supply chains that are efficient minimize time required to move goods, hence minimizing chances of production being shutdown. Cost required, when supplying goods is minimized and this is advantageous to customers.
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