Get to know supply chain management for ease of stock monitoring on business

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Get to know supply chain management for ease of stock monitoring on business

Get to know supply chain management for ease of stock monitoring on business

The supply chain (supply chain) and supply chain management or supply chain management (SCM) are often found in mass media and discussion forums in recent years.

What is the mean of the two terms and what is the use in your business? Let’s look at the discussion below.

Definition of supply chain management

Supply chain management can be interpreted as an integrated process that supports information systems to management regarding the procurement of products and management of antarmitra relationships. It aims to maintain the willingness of the products needed by the company to the fullest.

You could say SCM integrates all aspects, from shipping orders and processes, procurement of raw materials, order search, collaborative planning & information dissemination, to performance measurement, post-sales service, and the development of the latest products.

So, all companies that supply raw materials, produce products, and send them to end consumers called supply chain (supply chain). The supply chain is its physical network, while supply chain management is a tool, method, or management approach.

Supply Chain Management Benefits

If you apply supply chain management in the company, then be happy because you will get at least four of the following benefits.

1. Get customer satisfaction

Consumer satisfaction can be obtained if they are satisfied with the company’s service. If customers are satisfied, they become loyal consumers who use your product for a long time.

2. Increase profit

The more loyal consumers, there are also increasing company profits because the products offered are sold out.

3. Reducing costs

The benefit is achieved because of the integration of product flow from the company to the final customer. Cost reduction occurs because of costs in trimmed distribution channels.

4. Utilization of high assets

Assets, especially labor, are increasingly trained and skilled in terms of knowledge and skills. In addition, the labor is even more advanced empowering the use of high technology.

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Supply chain management component

There are three components in supply chain management like the following.

Upstream Supplay Chain

The level of management that manages the relationship between industrial companies and vendors of a product raw material provider.

Downstream Supply Chain

Management tasked with distributing products to consumers directly without going through vendors of goods.

Internal Supplay Chain

Management system that manages the income and availability of raw materials and manufacturing.

Function in business

How important is the function of the supply chain management concept in the business? Physically SCM escorts the process of raw materials and other components to become a product. The company then sent it to the end and convincing customers that shipping the product according to the wishes of consumers without questioning stock availability.

In essence, the application of SCM makes it easy for you to monitor the stock of a product in business. The function of the SCM concept is like the following.

Planning (planning)

This function means making a series of plans to achieve the purpose of a company.

Settings (Organize)

This means that companies must organize technical and non-technical matters to achieve goals.

Human Resources (Staff)

The company requires staff or labor to carry out plans that have been made. That way the company’s goal will be achieved.

Instruction (Directing)

The company presents guidelines or instructions adhered to by all staff who play a role in realizing a business plan or destination.

Supervision (controlling)

The supervision function to ensure that operational standards and instructions given are in harmony with the company’s goals and plans. The hope is the production process takes place optimally.


Actually, getting cheap products, fast distribution, and quality are three main reasons for supply chain management. By cooperating with several parties such as supplier companies, network distributors and retailers, as well as transportation provider companies, you are able to market products to consumers appropriately and quickly.

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Of course the relationship with all parties is mutually beneficial and still prioritizes customer satisfaction. For this reason, you must have a stock recording system that is always up to date on your business bookkeeping. If this is not done, it is not impossible that this will cause a problem in the future.

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