Supply Chain Management

The Supply Chain Management (SCM for short) is a management approach in which all flows of products, raw materials and components are recorded in a process-oriented manner.

 

The goal of the SCM is the optimization of resources. This objective requires the consistent mapping of all material and production flows, from order or production to delivery.

 

As a rule, this creates cross-company transparency. Economic decisions are supported, information data is available in real time.

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Features of a good supply chain management system

A good supply chain management represents the key function in the enterprise. For this purpose it must necessarily be integrated by an outstanding network integration. If this is the case all areas can be related to each other and the overall view of all areas is guaranteed.

These include transport, warehouse and production management, as well as order management. Procurement, distribution and production planning are based on these areas. This in turn is based on network and demand planning.

A good SCM increases customer satisfaction, quickly adapts to changing markets, lowers inventory, simplifies goods flow and reduces delivery times.

Example of a supply chain management system

Using the example of the fashion industry, where there is fierce competition and customer requirements change very quickly, the meaningfulness of a supply chain management can be presented very well. Narrow profit margins of retailers are putting a constant pressure on manufacturers. If you want to offer an excellent service here, you must have an excellent SCM.

In the worldwide supply chain of the fashion industry, above all speed, transparency and flexibility are required. With a good SCM, this is not a problem. Since all processes and departments can be analyzed in real time and displayed in a complete overview, the needs of the customers can be identified in good time and successfully operated. The manufacturer is maximally flexible and can offer the customer a highly transparent processing with fast delivery time.

In addition, the market is monitored using the supply chain management system. It is possible to react immediately to changes in requirements due to new or simply changed customer requirements and delivery routes. In the best case scenario, the manufacturer recognizes customer needs before the customer himself, thus offering innovations that ensure customer satisfaction and loyalty.

The fashion industry is very fast paced. Not only that there are four collections per year, the fashion trends sometimes change outside of the collections very quickly. A good SCM analyzes the current market situation and compares with historical data. On this basis, a prediction of the market trend is possible. Production and warehouse management can be prepared for future requirements at an early stage.

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