By Eric Howard


A lot happens before raw materials are converted to finished goods. After raw materials have been harvested, from their natural settings, they need to be transported and stored before they are taken to industries from where they are changed into finished goods. Finished goods are moved from manufactures to final consumer after having gone through wholesalers and retailers. Supply Chain Management plays a great role in ensuring that flow of goods and services are managed well in order to reach consumers in a good way.

Proper organization is beneficial in ensuring, there is order as raw materials move to manufactures where they are changed into more useful goods. Supervision of entire process is beneficial because it lowers time wastage and promotes efficiency in entire process. SCM promotes acceptable norms of handling goods and services as they move from producers to consumers. There is a very close relationship between SCM and fields such as; industrial engineering, procurement, logistics, information technology, operation management and information technology.

The manner in which manufactures handle their customers, determines how their image looks like. Customers comprehend producers better depending on the way they carry out; production process, distribution and scheduling. Good manufactures ought to come up with strategies that improve their relationships with customers. Any event that they intend to undertake should not only be of benefit to them, but also to customers. Upon capturing good image, concerned manufactures should work hard in order to maintain the already acquired image. This can be accomplished by creating goods, whose quality pleases customers.

It is important to comprehend that changes within the market do occur frequently. Changes could be brought about by changes in technology. This is evident when new machines are introduced. In this case, manufactures ought to be flexible enough so as to accommodate the already introduced technology. On other side, demands of goods and services do change with seasons. Manufactures should be flexible enough to ensure that they are able to produce goods in quantities that are able to meet demands of customers.

Physical distribution is concerned with the manner in which completed products are moved to customers. Marketing normally ends at the customer. In other words, physical distribution is essential in linking marketing channels to clients. Under this area, warehousing administration is also promoted. This is intended to reduce expenses of the company. Warehousing administration is concerned with; minimizing manpower cost, storage of goods, dispatching goods, unloading goods in the required area and also offloading them.

SCM is advantageous in society because many jobs are created. A good number of people acquire employment during distribution of products and services. Process contributes greatly in pollution reduction. When transportation of goods from producers to customers is managed well, energy consumption during this time is reduced. Less energy is used when goods are moved through modernized airports, ports, railways and improved roads.

SCM has a positive impact on customer service. Process ensures that right quantity of products is delivered to consumers within required time. Products are made available to customers in right location for the betterment. SCM promotes provision of after sale services of high quality to customers for better results.

SCM promotes efficiency as goods move from producers to consumers. Efficiency enhances reduction in production cost. Supply chains that are efficient minimize time required to move goods, hence minimizing chances of production being shutdown. Cost required, when supplying goods is minimized and this is advantageous to customers.




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