In the source activity of SCM, supply chain managers develop processes for managing their goods and services inventory, including receiving and verifying shipments, transferring the shipped materials to manufacturing facilities, and authorizing supplier payments.
Planning, acquiring raw materials, production, delivery, and returns are the five main components of supply chain management. While the other four components focus on the essential conditions for carrying out that plan, the planning phase includes creating an overall supply chain strategy. Securing products and services from suppliers who will do so in the most cost-effective and efficient manner is known as sourcing. To ensure that the company delivers high-quality items to the customer, suppliers must adhere to a set of requirements.
The three key flows in supply chain management are the flow of goods, the flow of data, and the flow of money. Product flow refers to the transfer of items from a supplier to a client. Customer service requirements and refunds are also included in this supply chain management cycle.
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