The process of Supply Chain management involves the management of raw materials to the manufacturing unit and shipment to reach the end users. Through proper management of the supply chain management process, the availability of the raw materials can be controlled in the manufacturing process. The proper management of the Supply Chain Management also controls the factors controlling cost and profit of the organization. It is necessary to understand the factors that affect the manufacturing process through effective management of supply chain process.
An effectively organized supply chain management can control the amount of raw material reach at the manufacturing stage at the appropriate time. It is also true that if the raw material are not controlled by supply chain managers then the whole manufacturing process will stop. This can lead to further complication as the workers will be left without any tasks to perform. Also the company will not be able to produce the desired number of goods within the stipulated time. Managing raw materials from alternative segments in case of emergency shortage can be made with supply chain management.
Making the cost of distribution is part of Supply Chain Management. A cost-effective supply chain management system can reduce several costs associated with the manufacturing process. Use of advanced technology in the Supply chain management system can make the manufacturing process more efficient. The routing of materials and processing of orders can be made productive through a well-maintained supply chain management system.
Certain manufacturing companies make use of the distribution system that is managed by the company itself Â and keeping this in balance with services provided by the contractors. However, having a distribution system owned by the company can be costly because of the repairs that may cost additional to the fuel charges. But the products outgoing from the company can have full control of the company in this case any human interaction.