One thing about supply chain, or oftentimes pertained to as supply network, that you have to be aware of is the fact that it is a reference to a system which consists of individuals, organizations, activities, resources, and even information to move a service or a product from the supplier to the customers. Every single supply chain is initiating the accumulation of raw materials, including further links of production like the creation of components as well as the assembly and merger of these components, before the product is being moved for storage and other processes , prior to finally reaching the customers. The people as well as the activities involved in a supply chain serve a single purpose and that is to transform all raw materials and other components into finished products, ultimately delivering the items to the customers. But then again, it is important to note that regardless of the size of the company, they do not have the full control over the entire process of the supply chain. If companies want to reap profits from their supply chain, then they have to make sure that it is well-managed.
It is vital and essential for companies to plan, implement, and even monitor the everyday processes of the supply chain. This needs to be done so that the availability of raw materials, the processing of the finished products, and the distribution through the supply chain, will be monitored and tracked down, because if they are managed wisely, this will bring laurels to the company, enhancing its business as they will be able to provide a very high level of satisfaction to the customers. In this present day and time that we live in, supply chains have become a little bit more complicated in comparison to before, and their coordinations are now undertaken by the high-level management of the company. In order for the supply chain to be brought with efficiency and efficacy, the employees have to follow the decisions made by the company, especially since their verdict is final and irrevocable.
Another thing about supply chains that you have to know of is that they are managed on three varying levels and these are operational, tactical, and strategy level as well. The difference among these three levels lies on the decisions that companies have to make such as that the operational level involves very short-term decisions, while the tactical level is for medium-term decisions, and the strategic level is for long-term decisions. What’s more is that the supply chain management system is addressing particular problems concerning the quantities and locations of the people partaking in the processes of the supply chain, and also, the management of the distributor network.
To become successful, companies have to utilize their supply chains very well.