Supply Chain Management Explained

Supply Chain Management Explained

By 

Harrison Soegiarto

Food & Beverage Enthusiast

Published 

March 1, 2022

Supply Chain Management Explained


Everyone wishes that the management of a business’s supply chain could be more straightforward. At Reeco marketplace, this is our mission.

Have you ever wondered how a single corn kernel can end up in your cereal box? How about that milligram of copper that lives inside your computer? In a world where we have never been more connected, the flow and exchange of goods have also never been more complex. Supply chain management is the management of activities within a network that normally consist of suppliers, consumers and warehousing & logistics parties. Although there are many types of supply chain — such as reverse logistics, cold logistics, agile — a supply chain simply illustrates how a business converts raw materials to finished goods, and vice-versa. 


5 Functions of Supply Chain:

There are several factors that make up an efficient supply chain. Here are 5 key functions that will heavily impact a business:


  1. Purchasing: In order to transform, manufacture and package finished goods, we need to acquire the required materials. The purchasing team not only ensures that raw materials arrive on time, but also takes budgeting and supplier relationships into account. Making sure that goods arrive on time is incredibly important as this is one of the first steps of production. Any delays will cause a domino effect in the day’s  operations. Plus, setting the right budget to make sure companies can afford such goods long term requires good collaboration with the finance department. 
  2. Operations: Forecasting, inventory management and manufacturing is heavily involved in a company’s operations. Accurate forecasting of demand usually dictates how many units to produce per period. Without it, businesses will be manufacturing blindly. A strong inventory management system must also be in place to store goods that are scheduled for future delivery, over-production or safety stock. 
  3. Logistics: Movement. Logistics link multiple aspects of the supply chain so that goods move around the network accordingly. Whether it’s movement from manufacturing to retailers to consumers, or from a mining facility, to suppliers to a buyer. 
  4. Resource Management: Strong resource management translates to an efficient allocation of limited resources. Calculating available storage capacity, labor management and budgeting are some of the key tasks associated with resource management. Medium to large-sized companies often invest in an Enterprise Resource Planning (ERP) system that centralizes all the key responsibilities of resource management in a productive manner.
  5. Information Workflow: Information sharing is important to make sure every stakeholder within the supply chain is on the same page. In other words, everyone has to be aligned with the same information in order to make the appropriate decisions. Adopting a system or software that increases visibility and communication between departments will prevent such misalignment. 


Simplify with Reeco shopping platform:


After reading all these factors, it’s understandable to feel overwhelmed. Everyone wishes that the management of a business’s supply chain could be more straightforward. At Reeco shopping platform, this is our mission. By utilizing AI and analytics, Reeco provides a marketplace that easily consolidates relevant suppliers for you. Relying on a purchasing team to make the right connections with suppliers have shown to be counterproductive for most companies due to long lead times. Using our platform, purchasing goods are made simple. Plus, you will have more visibility over all your invoice and spending through our dashboard. If you wish that finding the right suppliers for your business can be as easy as shopping on Amazon, then look no further, Reeco is your solution.


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