{"id":249899,"date":"2023-02-27T14:48:29","date_gmt":"2023-02-27T14:48:29","guid":{"rendered":"https:\/\/imarticus.org\/?p=249899"},"modified":"2024-04-01T10:30:13","modified_gmt":"2024-04-01T10:30:13","slug":"how-does-designing-the-supply-chain-work","status":"publish","type":"post","link":"https:\/\/imarticus.org\/blog\/how-does-designing-the-supply-chain-work\/","title":{"rendered":"How does designing the supply chain work"},"content":{"rendered":"
Designing the supply chain is a critical aspect of any business that involves the movement of goods and services from the manufacturer to the end customer. It involves the coordination and management of all the activities and resources required to plan, source, produce, and deliver goods and services to customers.<\/p>\n
The value of the global market for supply chain management (SCM) was USD 18.446 billion in 2021. It is forecasted to grow at a CAGR of 10.9% from 2022 to 2030.<\/p>\n
The increasing use of technology and new advancements are making the supply chain better and helping the market to grow.<\/p>\n
Meanwhile, SCM is a dynamic field. It comes with many challenges for companies to navigate. These challenges include:<\/p>\n
Complexity<\/p>\n
Volatility<\/p>\n
Transparency<\/p>\n
Risk management<\/p>\n
Sustainability<\/p>\n
Cybersecurity<\/p>\n
Talent and skill shortages<\/p>\n
Cost reduction<\/p>\n
Efficiency<\/p>\n
In this article, we will take a closer look at the key components of designing an efficient supply chain. It also covers how to become a certified supply chain analyst and future-proof your career.<\/p>\n
How to design an efficient supply chain management?<\/h2>\n
Designing the supply chain involves understanding and optimising the flow of goods and services from the manufacturer to the end user. It encompasses various activities such as:<\/p>\n
Planning<\/h3>\n
This includes forecasting demand, determining production schedules, and setting inventory levels.<\/p>\n
Sourcing<\/h3>\n
This involves procuring raw materials, components, and finished goods from suppliers.<\/p>\n
Manufacturing<\/h3>\n
This includes the production of goods and services.<\/p>\n
Logistics<\/h3>\n
This contains the movement of goods and materials from one location to another. It also concerns itself with the coordination of transportation and storage.<\/p>\n
Inventory management<\/h3>\n
This covers managing the flow of goods and materials in the supply chain. This includes the storage and distribution of inventory.<\/p>\n
Distribution<\/h3>\n
This comprises the physical delivery of goods and materials to customers. As well as the coordination of returns, and reverse logistics.<\/p>\n
Customer service<\/h3>\n
This includes addressing customer complaints, tracking orders, and handling returns.<\/p>\n
An effective supply chain design requires balancing these different activities in a timely, cost-effective, and efficient manner.<\/p>\n
Overall, a successful SCM design involves ongoing analysis, optimization, and adaptation to changing market conditions. Businesses must be willing to invest in technology, data analytics, and employee training to stay competitive. That's the only way to meet the demands of their customers.<\/p>\n
To delve deeper into how to design an efficient SCM, you can explore a supply chain management course with analytics certified by IIT Roorkee.<\/p>\n
Features of supply chain management course with analytics<\/h2>\n