Published March 26th, 2020
Importance of Supply Chain Management
A supply chain is a collaboration of multiple entities from different industries involved in processing raw materials into finished products and distributing them to the intended customers. Proper management of each entity in a supply chain is vital to maintain the uninterrupted, sustainable, and cost-effective production of goods and services.
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1. Vendors
Vendors are the suppliers of parts and raw materials to be processed and assembled by manufacturers. Vendors need to consistently meet the expected quantity and quality of materials according to the specifications of manufacturers to maintain a good business relationship.
- IATF 16949:2016
- Supplier Audit
- Advanced Product Quality Planning (APQP)
- Vulnerability Assessment Critical Control Points (VACCP)
- Standard Operating Procedure (SOP)
2. Producers
Producers are the ones who process raw materials into finished products. Also called manufacturers, they need to operate in compliance with industry standards on quality and regulations on workplace safety. Producers are often required by business institutions to be certified for certain international standards before they can engage in business.
- Good Manufacturing Practices (GMP)
- ISO 9001 (QMS)
- Hazard Assessment Critical Control Point (HACCP)
- Risk Assessment
- Layered Process Audit (LPA)
3. Warehouses
Warehouses store the finished products ready for distribution. Warehouses need to maintain the quality of products in storage and keep the organized and uninterrupted movement of goods while ensuring the safety of staff and forklift operators.
4. Distributors
Distributors transport the products from manufacturers to retailers or to international markets with the help of third-party logistics companies or shippers. Distributors need to ensure that the quality of products do not degrade while in transit and that they arrive at the expected date and time.
- Heavy Vehicle Inspection
- Vehicle Inspection
- Vehicle Maintenance Log
- ISO Container Inspection
- Transport and Logistics
5. Retailers
Retailers make the finished products available for purchase to customers. Retailers need to ensure that there are enough products in stock and that they are displayed in a manner that is attractive to customers and aligned with product branding. Retailers need to maintain the cleanliness of retail outlets and empower staff in promoting good customer experience to gain repeat customers.
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