Supply Chain Management: Overview of Supply Chain Components E

Supply Chain Management

What was the evolution history of supply chain management? What are the main components of supply chain? How big is the importance of supply chain integration?

What are the basic components of a supply chain? And how do they work together? The most of the companies are utilizing five supply chain components in order to bring products to the marketplace. The five supply chain components are Suppliers, Manufacturers, Distributors, Retailers, and Consumers/Customers.

Gambar Raw Material Sepatu Supply Chain

Supply chain management plays a very important role within the company. The supply chain generate most of the costs of the company, due to the width and complexity of the function (manufacturing, warehouse, distribution). Any inefficiency can create tremendous negative impact to the company. On the other hand, good supply chain management can bring huge benefits and competitive advantage to the company.

Effective integration and management of supply chain components and processes is helping to cost reduction and improve customer service. SC integration also gives a new set of capabilities which helps to the company to increase revenue and achieve a competitive advantage.

The supply chain consists of five main components:

  • Suppliers. They provide raw materials, component parts, semi-finished products, and other materials that occur early in the supply chain - unfinished or non-consumable products.

  • Manufacturers. The producers are considered as the center of supply chain. In reality, both suppliers and manufacturers are producing the products. Suppliers produce semi finished goods, while manufacturers are performing the final assembly or product integration.

  • Distributors. They are responsible for storing and handling of materials at warehouses and distributing to retail outlets.

  • Retailers. They are the intermediate step between supplier and consumers. They buy and resell the product

  • Consumers. They buy and use the product.

The most of the companies are utilizing all five components in the supply chain in order to get products to the market. But not all companies are using the same supply chain model. Some companies are skipping the distributors component of the supply chain completely. These companies simply takes orders, product is manufactured and shipped directly to consumer.

The supply chain management is not limited only to these five components. There are other parties that take part of the activities toward customer. They can be:

  • Logistics providers. Perform individual tasks such as transportation of products, or operating strategically placed warehousing or distribution operations. In some cases logistics providers provide multiple, integrated services. They are referred as third party logistics providers 3PLs.

  • Contract manufacturers ( subcontracting ). They give subcontracting manufacturing services. This practice is well accepted, since those companies can stay focused on main processes, while giving the operative part to the subcontractors.

  • Information-based service providers. This refers to the companies that have either software or other information technologies which assist with the activities of supply chain planning and/or execution.

  • Financial institutions. This includes banks and other financial institutions that provide supply chain services such as freight payment and billing, inventory financing, and inter-firm transaction management. Services may be for individual companies or combinations of companies within the supply chain.

Supply chain management plays a very important role within the company. The supply chain generate most of the costs of the company, due to the width and complexity of the function ( manufacturing, warehouse, distribution ). Any inefficiency can create tremendous negative impact to the company. On the other hand, good supply chain management can bring huge benefits and competitive advantage to the company.

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Readers' Questions

  • Anke
    Which of the following are elements or components of supply chain management?
    6 months ago
  • - Sourcing and procurement: This involves identifying suppliers, negotiating contracts, and managing relationships with suppliers to ensure the availability and quality of raw materials or products. - Inventory management: This includes tracking and managing the levels of inventory in order to ensure that the right amount of stock is available at the right time. - Production planning and scheduling: This involves creating a plan for production based on demand forecasts and resource availability, as well as scheduling the activities and operations necessary to meet this plan. - Warehousing and distribution: This includes the storage and management of goods in a warehouse, as well as the distribution of products to customers or other facilities. - Transportation and logistics: This involves the selection and management of transportation modes, such as trucks, ships, or planes, to move products efficiently and cost-effectively. - Demand forecasting: This involves analyzing historical sales data and market trends to predict future demand for products or services. - Information systems: This refers to the use of technology and software to gather, analyze, and share information across the supply chain, enabling better decision-making and coordination between different parties. - Customer relationship management: This involves managing relationships with customers, understanding their needs and preferences, and providing quality customer service throughout the supply chain. - Sustainability and ethical considerations: This refers to incorporating sustainable and socially responsible practices into supply chain management, such as reducing waste, minimizing environmental impact, and ensuring fair labor practices. - Risk management: This involves identifying potential risks and implementing strategies to mitigate them, such as developing contingency plans for disruptions in the supply chain or diversifying suppliers to reduce dependence on a single source.
    • Arnor
      Which element of the marketing mix focuses on developing an effective supply chain?
      7 months ago
    • The element of the marketing mix that focuses on developing an effective supply chain is "place" or distribution.
      • Crispina
        What valuechain activity is involved in the management of bringing a new product to market?
        7 months ago
      • The value chain activity involved in the management of bringing a new product to market is primarily the marketing and sales function. This function includes activities such as market research, product positioning, pricing, promotional campaigns, sales distribution, and customer relationship management.
        1. Market research: This activity involves identifying the target market, understanding customer preferences, and conducting market analysis to identify potential demand for the new product.
        2. Product positioning: This activity involves defining the unique selling proposition of the product, identifying its target market segment, and creating a marketing strategy to position the product effectively in the market.
        3. Pricing: Determining the appropriate price for the new product, considering factors such as production costs, competitive pricing, and perceived value for customers.
        4. Promotional campaigns: Designing and implementing advertising, public relations, and sales promotion strategies to create awareness and generate demand for the new product.
        5. Sales distribution: Establishing a distribution network or channel to ensure the product reaches the target market efficiently. This may involve selecting retail partners, negotiating contracts, and managing logistics.
        6. Customer relationship management: Building and maintaining relationships with customers through effective communication, addressing their queries and concerns, and ensuring customer satisfaction.
        7. These activities collectively help in managing the successful launch of a new product and increasing its market acceptance and sales.
        • Natsnet
          Which of the following is not an activity within the service value chain?
          7 months ago
        • The option not provided in the question, so I cannot determine which one is not an activity within the service value chain.
          • Elda
            Which element of the marketing mix deals with supply chain management?
            7 months ago
          • The element of the marketing mix that deals with supply chain management is "Place," also known as distribution. Place involves all activities required to make the product or service available to the target customers, which includes managing the flow of goods and services from the production site to the customer. Supply chain management focuses on efficient and effective movement of products through various channels to ensure customers receive the right product at the right place and time.
            • Juhana
              Which of the following is not a benefit to utilizing information in logistics?
              7 months ago
            • The option "Increased cost of transportation" is not a benefit to utilizing information in logistics.
              • azzeza daniel
                Which part of the value chain focuses on bringing materials to create the product?
                8 months ago
              • The part of the value chain that focuses on bringing materials to create the product is called the procurement or sourcing stage. In this stage, the company identifies and selects suppliers, negotiates contracts, and procures the necessary raw materials and components.
                • Veli-Pekka
                  What element of the marketing mix is related to warehousing and storage of products?
                  9 months ago
                • Distribution. Warehousing and storage of products is an element of the distribution element of the marketing mix, which also includes transportation and logistics.
                  • VALA
                    Which of the following is not a key aspect of supply chain management?
                    9 months ago
                  • Expertise in marketing and sales
                    • MAIA
                      Which of the following is one of the primary parts of the value chain?
                      9 months ago
                    • There are several primary parts of the value chain, but one of them is "operations." Operations refer to the activities involved in the production or delivery of a product or service. This includes manufacturing, assembly, maintenance, packaging, and quality control.
                      • niklas
                        Which activity is not part of supply chain management?
                        9 months ago
                      • There are numerous activities that can be considered as part of supply chain management, but one activity that is not typically associated with supply chain management is product development or design. While supply chain management involves the movement of goods and services from suppliers to customers, it does not directly involve the design or development of the products themselves.
                        • WILFRED PACHECO
                          Which of the following is a key element of customer relationship management?
                          10 months ago
                        • 1.Analytics and data-driven decision making 2.Developing strong customer relationships 3.Providing a personalized customer experience 4.Creating an effective loyalty program 2. Developing strong customer relationships
                          • Laura
                            Which of the following is not part of valuechain analysis?
                            10 months ago
                          • Brainstorming is not part of value chain analysis. Value chain analysis is an analytical tool used to identify and analyze the important activities within a company's operations that create and add value to its products and services for the customers. It helps to identify where a business has the potential for improving performance or reducing costs.
                            • marzio
                              Which of the following is not a benefit of effective supply chain management?
                              10 months ago
                            • Increased customer loyalty is not a benefit of effective supply chain management.
                              • Harley
                                Is an important element of supply chain management?
                                11 months ago
                              • Supply chain management is the management of the flow of goods and services, all the way from the raw materials and parts suppliers, to the manufacturers, warehouse operators, transporters, and the point of sale. It involves the coordination and integration of all the activities that occur within the entire supply chain, from the procurement of raw materials to the delivery of the final product to the end customer. Supply chain management is an important element of supply chain management because it enables businesses to optimize their processes and operations, and to minimize costs, while still providing high levels of customer service. The goal of supply chain management is to maximize efficiency, reduce costs, and ensure customer satisfaction.
                                • Dominik
                                  Which is not the primary component of logistic management?
                                  11 months ago
                                • Logistics management primarily focuses on the efficient flow of goods and services, from the point of origin to the point of consumption. The primary component of logistic management is planning and controlling the flow of goods, services and information. This includes tracking and managing stock levels, storage and transportation of goods, inventory control, as well as the monitoring and optimization of costs. Other components of logistic management include forecasting, order fulfillment, quality control, and customer service.
                                  • Michael
                                    Which part of the value chain includes the manufacturing of goods?
                                    1 year ago
                                  • Manufacturing is part of the value chain as it is a crucial step in physically producing a product. Manufacturing involves using raw materials, components, and parts to build finished goods. It is the last step in the value chain before delivery to the customer or end user.
                                    • denice
                                      Which of the following is essential for good value chain management?
                                      1 year ago
                                      1. Strategic planning
                                      2. Customer segmentation and targeting
                                      3. Process improvement
                                      4. Supply chain optimization
                                      5. Quality assurance
                                      6. Risk management
                                      7. Data analysis and reporting
                                      8. Resource allocation and utilization
                                      • chris delagarza
                                        Which of the following is the key element supply chain management manages?
                                        1 year ago
                                      • The key element of supply chain management is the flow of products, services, and related information from suppliers to customers.
                                        • uranio
                                          What are two of the primary features of ebusiness components?
                                          1 year ago
                                          1. Online Presence: An essential component of e-business is having a visible and accessible presence online, such as a website or social media page. This includes hosting a presence that provides product or service information as well as customer service and support.
                                          2. E-Commerce: E-commerce is the buying and selling of products and services over the internet. This includes online stores, online marketplaces, auction websites, and more. E-commerce can allow businesses to reach new customers, simplify transactions, and increase efficiency.
                                          • darcie
                                            Which of the following is not one of the activities involved in the value chain?
                                            1 year ago
                                          • Validation
                                            • KIROS
                                              Which of the following is one of the business areas of supply chain management?
                                              1 year ago
                                            • One of the business areas of Supply Chain Management is Logistics. Logistics involves the planning, implementation and control of the efficient, cost effective flow and storage of goods and services, as well as the associated information, from their point of origin to their final destination. Logistics is an essential part of the supply chain and involves activities such as transportation, warehousing, inventory management, packaging, and order fulfillment. Logistics also involves managing the relationships between supply chain partners including manufacturers, retailers, third-party logistics providers, and suppliers.
                                              • MARGO
                                                Which of the following is a part of a company's supply chain management?
                                                1 year ago
                                              • ? A) Forecasting B) Procurement C) Logistics D) All of the Above D) All of the Above
                                                • futsum
                                                  Which of the following is an advantage of supply chain management to companies?
                                                  1 year ago
                                                  1. Increased customer satisfaction
                                                  2. Improved operational efficiency
                                                  3. Reduced inventory costs
                                                  4. Enhanced supply chain visibility
                                                  5. Increased collaboration among business partners
                                                  • ali semere
                                                    Which of the following is not a goal of supply chain management?
                                                    1 year ago
                                                  • Maximizing profit
                                                    • antti rasi
                                                      Is a component of supply chain management?
                                                      1 year ago
                                                    • Yes, supply chain management is a component of supply chain management. Supply chain management involves managing the flow of goods and services from the point of origin to the point of consumption in order to meet customer demands. This includes managing all aspects of inventory, procurement, transport, logistics, and warehousing.
                                                      • ANITA
                                                        Which of the following is not one of the five basic components of supply chain management?
                                                        1 year ago
                                                      • The following is not one of the five basic components of supply chain management:
                                                        1. Planning: involves creating a strategy to meet customer demands.
                                                        2. Sourcing: finding and negotiating with suppliers.
                                                        3. Making: manufacturing or assembling products.
                                                        4. Delivering: ensuring products reach customers in a timely manner.
                                                        5. Returning: handling product returns and managing reverse logistics.
                                                        6. The answer is "Returning."