Sunday 30 December 2018

Supplier chain management (SCM)

Manufacturing Industry, its main Activity is to convert a wide range of raw materials as well as supporting materials into finish goods and distribute it to customer. With these activities, then run it in what is call the Supply Chain or supply chain has been basically form.

However, for a manufacturing company, the activities of the Supply chain or supply chain needs to run effectively and efficiently so that the required Professional management in practice. Management is usually refer to as supply chain management or Supply Chain Management are often abbreviate with the acronym SCM.

Introduction to SCM

If defined, then a complete Supply Chain Management (SCM)  is a series of events that include coordination, scheduling and control of procurement, production, inventory. The delivery of products or services to customers that include daily administers, operations, logistics and processing of information ranging from the customer to the supplier.

As for the other simpler definition, Supply Chain Management or supply chain management is the mechanism. That connects all the parties concern and the activities involve in the convert raw materials into finish goods. The concern parties or activities is responsible for providing the goods so produce. To customers at the right time and place with the most efficient way.

So in essence, Supply Chain Management or supply chain management is a branch of management involving Suppliers, factories or logistics provider Manufacturer, and certainly the most is the customer.

The Processes of Supply Chain Management

The following is the process of supply chain management are involved in the supply chain management or Supply Change Management (SCM).


In most of the Manufacturing industry, the customer or the customer is the first chain of giving orders (orders). Especially at companies that are oriented to the OEM (Original Equipment Manufacturer). The customer decides to buy a product offer by the company in question by contacting the Sales Department (sales) company. Important information contain in the order of them such as the date of delivery of the product. The desire Amount for the product order.


After the customer makes an order that it wants, the Ministry of planning (Planning Dept) will prepare production planning to produce the products required by the customer. At this stage, the Planning Department is also aware of the existence of the need for raw materials and the materials of his supporters.


Upon receiving the Planning production, in this case is the need for raw materials and the materials of his supporters. The Department purchases or Purchasing Department will place an order raw materials and ingredients of his supporters. As well as set the date the acceptance and the amount need.


Raw materials and material support which has been accept by the factory will be inspect for quality and accuracy of the numbers are then store in a warehouse to production needs.


Part of the production will use raw materials and supporting materials are supply by the supplier to perform. The production process to produce finished goods need by the customer. Finish goods that have been produce are then enter into the warehouse. The ready to be delivered to customers in accordance with the schedule specified.


Department of shipping or Shipping Department will arrange departure time finished goods are in the Warehouse in accordance with the schedule as desired by the customer.

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