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Testimonials

SCM Concept
SCM Function

Supply Chain Management (Supply Chain Management, SCM for short): refers to suppliers, manufacturers, warehouses, distribution centers and distributors in order to minimize the cost of the entire supply chain system while meeting certain customer service levels. Management methods for product manufacturing, transshipment, distribution and sales that are effectively organized together. Supply chain management includes five basic contents: planning, procurement, manufacturing, distribution, and return.

1.Plan:

This is a strategic part of SCM. You need a strategy to manage all your resources to meet your customers' needs for your products. A good plan is to establish a series of methods to monitor the supply chain so that it can deliver high quality and high value products or services to customers efficiently and cost effectively.

 

2. Purchasing:

Select suppliers who can provide goods and services for your products and services, establish a pricing, distribution and payment process with suppliers and create methodological monitoring and improvement management, and provide goods and services to suppliers. The management process is combined, including picking up the goods, verifying the manifest, transferring the goods to your manufacturing department, and approving the payment to the supplier.

 

3.

Manufacturing:

The activities required to arrange production, testing, packaging, and preparation for delivery are the most measured parts of the supply chain, including measurements of quality levels, product yields, and worker productivity.

 

4. Distribution:

Many "inside people" call it "logistics", which is to adjust the user's order receipt, establish a warehouse network, send delivery personnel to pick up the goods and deliver them to the customer, establish a goods pricing system, and receive payment.

 

5. Returns:

This is the problem handling part of the supply chain. Establish a network to receive defective and redundant products returned by customers, and provide support when customer application products have problems.

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