What is the supply chain? How should supply be managed?

What is the supply chain? How should supply be managed?

There are generally two different types of sales in the e-commerce sector. They can be examined in two main groups as products and services. If it is a product sold through an online store, its production and supply must be planned. So, at this point, Supply Chain Management comes into play.

Supply chain management is a form of management in which the flow of materials, information, and money is integrated, ensuring that the right product reaches the customer at the right time, in the right place, at the right price, and at the lowest prices. Potential cost of the entire supply chain. Ensuring the integration of core business processes in the chain and creating strategies and models that will increase customer satisfaction are also included in this management system.

In the 1990s, long before electronic commerce took its current form, supply management was described as a process consisting of purchasing, storing, and shipping a product. However, this management style has also changed with the development of information technology. Now, non-manufacturers can also supply products directly using the channels of manufacturers, distributors and wholesalers. In fact, they can provide the same product through more than one channel and offer it to their customers at reasonable prices, as many successful e-commerce sites do today.

What is the supply chain?

Supply chain is the entire process of communication and movement of products between suppliers, manufacturers, collectors, distributors, retailers and finally consumers. It consists of a wide range from the production of goods to the supply and delivery to the consumer. The supply chain also includes many different areas such as the sales process, production, inventory management, material sourcing, distribution, procurement, sales forecasting, and customer service. Therefore, in order to have a general understanding of all these systems, it is necessary to examine the concept of supply chain well.

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Within supply chain management;

Where will production occur and what is the best sourcing strategy?
Create short-term processes such as estimation, planning, lead time, and overtime schedule
Inventory distribution, detailed scheduling and how to guarantee orders in case of any malfunction Topics included.

In the supply chain management process, you aim to provide good product service in a way that satisfies customers using information management and operations research mathematics. In this technical nature, advanced software, relational databases, etc. Technical tools are used.

What are the main functions of the supply chain?

In supply chain management, functions that are each link in the chain must be integrated. A series of functions and tasks are carried out in line with six basic objectives in delivering products from supplier to consumer.

  • Manage requests and orders
  • the purchase
  • planning
  • production
  • inventory management (inventory)
  • stores management
  • shipping (transportation)

You can improve delivery performance Thanks to the supply chain, you can reduce your inventory. In addition, the order execution rate will increase. The supply chain increases the accuracy of demand forecasts and shortens the supply cycle time, which reduces logistics costs. In this way, increased productivity and capacity are also ensured.

When we look at it overall, it is possible to see that both customer satisfaction has increased and total cost has decreased. Even when we look at all this data, it is possible to see how important the supply chain is in terms of e-commerce.

It offers you features for the benefits of online sales and the topics we have mentioned and much more. If you want to take advantage of these e-commerce benefits, you can enter the online world with smart e-commerce packages with IdeaSoft.

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