Today, supply chain is an activity that directly affects the production and business activities of every company. Additionally, it also helps businesses direct their business strategies. If you can manage the supply chain well, your business will gain an advantage in the market and outperform its competitors. SO, What is supply chain management?? How to effectively manage the supply chain? Readers, please follow the following article to get more useful information.

1- What is supply chain management?
2- Effective supply chain management
2.1- Customer segmentation according to needs
2.2- Individualize logistics activities
2.3- Monitor market signals
2.4- Create products with unique characteristics
2.5- Research and build relationships with suppliers and partners
2.6- Application of technology in the supply chain
2.7- Develop and apply appropriate metrics

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1- What is the supply chain?

The supply chain, also known as the supply chain, is a complex series of interconnected activities that convert and move raw materials into final products, which are then delivered to consumers.

Many different entities participate in the supply chain, including suppliers, manufacturers, distributors and consumers. The supply chain is not simply about carrying out operations according to a process. In fact, this concept has a very broad scope. It is about guiding and developing operations in depth to bring great benefits to companies.

2- Effective supply chain management

In addition to learning what a supply chain is, how to manage the supply chain to achieve high efficiency is also something that interests many people.

To manage the supply chain effectively, you can apply the following:

2.1- Customer segmentation according to needs

Not all customers have the same needs and the same ability to pay. Therefore, you need to segment your customers correctly.

Customer segmentation is also not easy. To do this, companies must conduct customer research, calculate costs, profitability and the services needed for each customer group.

2.2- Individualize logistics activities

This means you will need to adjust logistics accordingly to best meet customer requirements and meet company profit targets. You will need to complete the order processing process from receipt to delivery and collection of payment.

2.3- Monitor market signals

If you want to manage your supply chain effectively, you need to regularly update, analyze and forecast market demand. This will help you make appropriate adjustments to reduce potential risks.

2.4- Create products with unique characteristics

Companies should focus on product improvement and innovation because it is a factor that helps them increase their ability to respond to market signals. On the other hand, this improvement must take customer needs as the basis for implementation.

By increasing differentiation, a company’s products will be more accessible to customers. This can reduce inventory.

2.5- Research and build relationships with suppliers and partners

To effectively manage the supply chain, businesses must choose suppliers and partners that meet their criteria. At the same time, efforts must be made to maintain and develop relationships with them.

Cooperating with the right suppliers and properly managing supplies will help companies minimize costs, reduce sales prices, increase profits and the company’s competitive position.

2.6- Application of technology in the supply chain

Supply chain management is often quite complex. This often requires close engagement and cooperation between companies and their partners. Therefore, you need to find ways to apply modern tools and software to supply chain management so that everything can be managed easier and faster.

2.7- Develop and apply appropriate metrics

To effectively evaluate and improve supply chain management, you must create an evaluation system with specific standards and metrics. This system will include many elements. But it’s important that it’s right for your business.

Above are some important information that Ms. Uptalent wants to share with you about what supply chain is as well as how to manage supply chain effectively. I hope you can apply the knowledge in this article to effectively create and manage your company’s supply chain. Good luck!

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