What Are the Four Elements of Supply Chain Management

What Are the Four Elements of Supply Chain Management? What Are the Four Elements of Supply Chain Management? Related Articles. 1 The Advantages of Supply Chain Management Systems 2 "The Definitions of ""Upstream"" and ""Downstream"" in the Production Process" 3 "Explain the Term ""Supply Chain"" and Its Importance to Cost Management" 4 Push vs. Pull Supply Chain Strategy. A supply chain is a sequence of processes that must be completed to produce and distribute a commodity. This commodity might be goods or it might be services, but either way, there needs to be a clear manufacturing path for the goods or services to be produced. Having a strong supply chain is crucial to that goal, and so is managing it effectively so the supply chain produces the best results -- because that's vital to business health. Here are four main elements to supply chain management. Integration. This could be considered the brains and heart of the supply chain. Overseeing supply chain integration means coordinating communications between the rest of the supply chain to produce effective and timely results. Often, this means exploring new software or other technological means to foster communications among departments. Those in charge of integration are responsible for making sure that things are happening on time and on the budget, without sacrificing quality. Operations. This link in the supply chain coordinates the specifics of day-to-day operations for the company. It plans the company’s output to make sure everything is running well and that advantages are maximized. Operations will keep an eye on company inventory. They use business forecasting to predict which supplies will be needed when and by whom and also to find ways to predict the effectiveness of products, marketing approaches, as well as end-user results. Overall, the company’s production is overseen by operations. Purchasing. This department sources the materials, products, or other goods needed to generate the company’s products. Purchasing creates relationships with suppliers and also identifies the qualities and quantities of necessary items. It’s very important for those in purchasing to keep an eye on the budget for things to be cost-effective for the company, as well as adhering to high-quality standards. Distribution. How do businesses commodities end up where they are supposed to? Distribution coordinates that. The logistics of communications among retailers, clients, or wholesalers is the responsibility of the distribution part in the supply chain of command. These groups must keep on eye on shipments, and to know not only what is needed in-house to produce products but also that the products get to the end-customer on time and in good shape. The four elements of supply chain management must work cohesively for everyone’s benefit. Not only do end-customers reap the rewards; employees themselves also reap the rewards. A well-oiled supply chain is key to a harmonious work environment, because when everyone does what they are supposed to do, there is less stress for everyone.