Supply Chain Management is the entire operation of an enterprise, from the beginning of information gathering and planning to implementation and follow-up. It`s an integrated chain, starting with manufacturing, coordination, packaging, transportation, storage, and delivery of products to wholesalers, retailers, or final consumers, combines two elements, art, and science because it is based on designing and managing policies and choosing appropriate strategies.

Supply Chain Management is the process of organizing, planning, coordinating, and following up on the company’s functionality through a set of supply chain factors to improve and strengthen the company’s long-term performance.

The supply chain is based on a set of objectives concerned with providing the necessary information, as it is an important part of the company. Among its objectives are:

• Increase the amount of information as well as reduce inventory and operational costs.

• Resolves and reduces the barriers and problems that can exist during or after operations with transparent information.

• Strengthen, improve and develop the Material, Information, and Cash Management Center.

• Reduces the complexity of creating or being in business to the extent possible.

• Access to the best results and benefits from expenditure, quality, and time.

supply chain management

The concept of supply chain management, defined as a set of operations between suppliers, manufacturers, retailers, or wholesalers that supply them with the required products and quantities on time, and that reduce overall costs to the maximum extent possible while maintaining the highest quality and service levels.

• Deliver high-quality, timely, and designed products at an agreed location at a minimal cost.

• Reduce inventory costs to the extent possible while providing high-quality customer service.

• Low average time per production cycle.

• Reducing the feeling of uncertainty or uncertainty within the supply chain, and the spread of positivity in all inventory levels, operations, and the level of customer service.

• System optimality determines the level of quality and focus of supply chain management.

• plan

The plan is the main step in the life of any product because the primary goal is to achieve maximum sales of the product or service.

The bulk of the planning is directed towards developing and modernizing the control process to describe the supply chain with efficiency and effectiveness, achieving the lowest possible cost in addition to achieving the best quality of products and the highest demand from customers. There are some detailed elements, including:

1. Customers: Identifying products and services; that has a great demand on the part of customers and that the market needs.

2. Forecasting: Forecasting required quantities and dates of customer demand.

• Source (Supplier)

It is a process in which the appropriate supplier is selected for the transportation and shipment of sales, i.e., products or services, as well as the appropriate price, shipping, payment, and receipts of customers or suppliers, and the most effective and efficient control methods are developed, new relationships are created with all customers and incorporate some sub-factors including:

1. Inventory: identifying what the product requires for good storage to know the cost of maintaining inventory from the management side.

2. Evaluation: Customers or suppliers are evaluated to achieve the right quality while respecting deadlines, creating good customer relations, and flexibility in demand and supply.

• Manufacturing

This is one of the Most Important elements in the supply, where the most priority products and services required by the market are manufactured, packaging, quantity determination, and delivery is selected. This is a component of the supply chain that needs a great deal of knowledge in the operations to extract the best quality and efficiency output to compete with the rest of the companies.

• Delivery

Sometimes called logistic, it means the system or chain of supply, which is intended to select the best way to transport the product and storage; by managing operations that coordinate and direct with suppliers, modernize warehouse networks, organize transport methods, and this is to deliver the finished product and a ready-to-use device to customers.

In addition to developing effective systems and rules on invoicing and proof of receipts from suppliers, five elements give effective and efficient supply chain systems:

1. Time.

2. product or service.

3. costs.

4. collection.

5. The interplay between internal and external systems.
   

• inventory meter

The inventory scale starts with the physical inventory of all products, materials, all items within the stores, and the inventory measurements are divided into three methods:

• total inventory value rate

The total inventory value is the total inventory of all holdings, whether the inventory or the products of materials within the warehouses, whether fully manufactured or raw materials.

The Store Total Value Rate Act = [number of units (a) x value of unit (a)] + [number of units (b) x value of unit (b)].

• The time limit for covering orders from inventory

And to be able to get to the number of requests that are set, we can easily use this simple equation.

Specified duration = “total inventory value rate” / “total sales cost”

• Inventory turnover, to be determined by the following equation:

Inventory turnover= annual sales cost / total inventory value rate

• Operations standards

There are 3 measures to improve the efficiency and effectiveness of the supply chain:

1. Create good relationships with suppliers and customers.

2. Satisfy all market and customer requirements.

3. Control performance by measures of quality, time, and cost.

There are two types of supply chain strategies, and they are:

There are supply chain strategies, and each of them is of great importance besides, that each one has its drawbacks and advantages

• Multi-Vendor Strategy

This strategy has existed since ancient times, and it is traditional. The company chooses the supplier that offers the lowest price through the offers that come to them due to the invitation of the company that wants to supply certain materials according to the rules and conditions set by the management. The company may activate competition between suppliers to reach the lowest cost with the highest possible quality.

Among the advantages of this strategy

It allows the company to choose the high-quality product with the lowest cost.

A disadvantage of this strategy

They ignore the long-term relationships between the company and its resources.

• Few suppliers’ strategies

This strategy is not about short-term relationships but rather about building long-term relationships with the few suppliers you trust and trust in their products.

Benefits of this strategy:

• Enable suppliers.
  

• System-resource sharing in improving systems, such as sharing ideas of innovation and evolution.

• The Strategy of the Alliance Networks is to strengthen the material and moral suppliers so that the customer becomes allied with the company, and this creates good relationships.

If you want to choose the right supplier, you have to follow the following stages:

• Research phase

The company conducts a general survey of all suppliers who have the materials requested by the company and prepares a list that includes their names.

• Information and data collection stage

Then we search for all the information about the suppliers in terms of quality and their reputation in the market and inventory the available alternatives to prepare a list again that guarantees the best suppliers.

• contracting phase

This is the final stage in the contracting and agreement of selected or unanimous suppliers whose products are in accordance with the rules, conditions, and specifications that the company needs.