The supply chain management is a comprehensive field of economics, which studies the process by which various goods and services are produced, distributed, purchased, delivered, stored, broken down, or reused. This field of economics helps in answering important economic questions such as how producers, retailers, and consumers coordinate to meet consumer needs through various activities.
There are different types of supply chains. The production chain involves the manufacturing of products and then selling them to end users. The distribution chain involves the movement of goods from production to final use and is characterized by the movement of goods from their raw materials to their final destinations. The service-chain is a system in which a service provider sells the products or performs other services related to a given product.
Organizational activities include decision-making, organizing plans, controlling resources, tracking results, and managing activities in an organized manner. In some cases, this might include decision-making about the right type of processes to be followed at different stages of the manufacturing process or decision-making regarding the right kind of people who should perform each task involved in a given organization. In some organizations, it also includes decisions on the type of instruments or machinery to be used for specific activities.
Organizations which have a strong supply chain system are more efficient in terms of time and money. These organizations have been able to keep costs at the minimum level and increase productivity. The cost of producing goods has also been kept low through effective planning of activities and the appropriate allocation of resources. In the United States, organizations such as the American Society of Mechanical Engineers (ASME), The Institute of Electrical and Electronics Engineers (IEEE) or The Institute of Supply Chain Management (ISCM) have been actively involved in the development and adoption of standards for the improvement of supply chain practices.
Organizations and businesses that depend heavily on exports may benefit greatly from the establishment and maintenance of a reliable supply chain in India. These organizations are capable of using local resources to produce goods in higher volumes, while at the same time maintaining low prices and the lowest production costs. Such organizations can increase their export income by providing products at lower prices to third-world countries. and developing countries which have a need for lower priced goods. goods and components.
A successful supply chain system in India is dependent on the effective communication of relevant information. between different organizational units. It ensures that all employees in all stages of the organization are well informed about the activities of all other units and what is required.