The management of goods and services from point of manufacture to the point of consumption refers to Supply Chain Management. It involves effectual planning, design, execution, control, and monitoring of supply chain activities. Effective supply chain management facilitates optimization of resources, proper flow of materials, information and capital thereby reducing operational cost and avoiding delays. Organizations rely on its supply chain team for the entire process of logistics.
The role of supply chain manages is integral in every industry. In order to become a supply chain manager, the candidates should know how to take care of all the supply chain activities. The main aim of SCM deals with taking care of 7 R’s these are as follows:
1. Right Product
The basic constituent of supply activities are the products that are transported from the manufacturer to the consumers. Supply chain managers should know what kind of product needs to be manufactured, handled and transported. The best strategy is to choose a product that is in demand and that can guarantee profits. Having right knowledge and using the right product will facilitate in efficaciously managing the time and resources.
2. Right Place
Next important factor is that the right product should be sent to the right place. The supply chain managers should ensure that they have efficient and experienced delivery staff so that the product is delivered to the right place. The managers can develop a robust delivery system with location tracking so that both the customers and the providers can track the exact location of the product and get it delivered to the right place.
3. Right Price
Pricing is imperative for the businesses as it is the factor that decides whether it has incurred profit or loss. The supply chain manager should research market trends and set competitive prices for the goods and services. Furthermore, there should be a system that keeps a record of the prices and updates it regularly so that the products are sold at the right price.
4. Right Customer
Customers are the core component of supply chain processes. The managers must have knowledge about their target market. If the products are sold in the right market then the company gains more leads and they get the right customers that can stay with them life-long.
The quality of deliverables is of utmost importance. It is the duty of the supply team to ensure that the goods are stored properly and delivered to the customers in the right condition.
6. Right Time
Time is a crucial factor in logistics. Customer’s satisfaction and long-term relationship are only possible if the products are delivered to the customers at the right time. It is the task of managers to develop a tracking system and coordinate with the delivery team to get the items delivered before the deadline.
Sending right amount of products is also important in logistics. It is the task of the supply chain managers to find the right quantity of deliverables and to coordinate with the manufacturing and delivery team to get the right quantity of products delivered to the customers.
These are the seven R’s of supply chain management that ensure that the whole process of logistics is carried out effectively. A Post Graduate Diploma in Supply Chain Management from MIT School of Distance Learning provides extensive knowledge of the field so that the successful candidates are immediately absorbed in the industry. Since it is a distance learning program, so the interested candidates can pursue the course at their convenience.