What is the supply chain management process in Agribusiness?
What is the supply chain management process in Agribusiness? Management of the supply chain is a mechanism used by corporations to guarantee that their supply chain is efficient and cost-effective. The series of steps that a company takes to turn raw materials into a finished product is a supply chain. Below, the five essential components of supply chain management are discussed:
The planning stage is the initial stage of the supply chain process. To discuss how the goods and services can meet the customers’ expectations and needs, we need to build a plan or strategy. The planning at this point should concentrate primarily on designing a strategy that generates maximum benefit.
A plan has to be planned by the organizations to handle all the resources needed to design products and provide services. Management of the supply chain generally focuses on preparing and creating a collection of metrics.
The next step, after preparation, involves developing or sourcing. We focus primarily on developing a good relationship with suppliers of the raw materials needed for manufacturing at this level. This includes not only finding reputable vendors, but also assessing various methods of preparing for product shipping, delivery, and payment.
In order to produce the goods and services they need to create their product, businesses must choose suppliers. The supply chain managers must therefore establish a collection of pricing, distribution, and payment processes with suppliers at this point and also build the metrics for managing and optimizing relationships.
Finally, the managers of the supply chain may combine all these processes to handle their inventory of goods and services. This handling includes obtaining and inspecting shipments, moving them to manufacturing facilities, and approving payments from suppliers.
The processing or production of products that have been ordered by the customer is the third stage in the supply chain management process. For delivery at this stage, the products are prepared, produced, tested, packed, and synchronized.
The supply chain manager’s job here is to plan all of the activities needed for production, testing, packaging, and distribution planning. This stage is regarded as the supply chain’s most metric-intensive unit, where companies can calculate the levels of quality, the performance of production, and productivity of workers.
The distribution process is the fourth step. Here, the items are delivered to the customer at the destined location by the manufacturer. This stage is essentially the logistics stage, where consumer orders are approved and the goods are prepared for delivery. The stage of distribution is also referred to as logistics, where businesses cooperate to accept customer orders, set up a storage network, pick up carriers to deliver goods to customers, and set up an invoicing arrangement to collect payments.
The last and final step of the management of the supply chain is called a return. In the procedure, faulty or damaged goods are given by the consumer to the retailer. Here, companies need to answer questions from clients and respond to their complaints, etc.
For many enterprises, this stage also appears to be a troublesome phase of the supply chain. Supply chain planners need to discover a sensitive and versatile network to take back from their customers damaged, faulty and extra goods and promote the return process for customers who have problems with shipped products.
you may read also:
Supply Chain Segmentation: why you should segment your supply chain?