4 Elements of Supply Chain Management (2024)

• Nick Altrup
• December 7, 2021

Businesses rely heavily on a good supply chain system to oversee the entire manufacturing process, fromraw material procurement to product production and distribution to customers.Supply chain managementis divided into several sections, includingsuch as supply chain phases, features of supply chain and elements of supply chain management.Integration, operations, purchasing and distribution are the four elements of the supply chain that work together to establish a path to competition that is both cost-effective and competitive.

Integration

Communicating and collaborating with all parties is a business strategy that eliminates errors and saves money. Integrating each division with one another combines expertise and builds teams.Manager duties become more efficient and successful when teams are integrated into the sequence of processes, as it is easier to monitor overall operations and identify areas for future improvement.

Operations

Supply chain operations are the backbone of the supply chain process, ensuring your employees have consistent work.Managers monitor day-to-day operations to ensure that various supply chain phases stay on track.Many companies today have adopted lean manufacturing strategies, in which all processes are consistently evaluatedto determine which parts of your operations may become more efficient.By monitoring equipment to ensure efficiency or knowing when to decrease manpower, the operations team can make major improvements to the supply chain system.

Purchasing

Knowing ahead of time what your supply chain process will look like within your company is a crucial aspect. It is important to know exactly what goods to purchase within your company, whether it is materials, supplies, tools, or equipment.Hiring qualified purchasing personnel and ensuring that your employees understand inventory management are critical components of a strong supply chain. This ensures that your company does not run short on materials, causing production to be significantly delayed.Having the wrong person in this position can be detrimental to your business as there is potential to overbuy raw materials and strain your company’s budget.

Distribution

The final step in the supply chain is when your product is received by customers, either from store shelf or through direct shipping.For products to reach their final destination, supply chain distribution must be well planned.Implementing logistics software into your company for employees to learn or outsourcing athird-party logistics(3PL) company will ensure products are handled properly so that they may reach customers quickly which is the goal of a distributor.

Knowing the 4 elements of supply chain management will help you have a better understanding of what to focus on and improve within your company. Being able to meet the supply and demand need of your company’s product will significantly improve customer relationships as well as overall business performance.

It might be challenging to keep track of all other elements of your business while troubleshooting issues in your manufacturing process. Outsourcing a 3PL for supply chain management can help reduce the stress that comes with running your business,allowing your company to focus on identifying problems and developing solutions. NewStream Enterprises, LLC provides excellentsupply chain management solutions, managing all portions of your supply chain from procurement to fulfillment to maximize your customers’ satisfaction. Using NewStream’s services can help your business focus on otherparts of its operations while also improving its overall performance.

Let NewStream help you reduce the stress of managing your supply chain, so that you can start loving your supply chain.

Want to hire experts to take charge of your supply chain?ContactNewStream today!

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