One of the main activities of a company that sells products is to process raw materials into finished goods and send them to buyers. The series of activities are included in the supply chain and must be managed properly for the success of the company. To manage supply chains optimally, companies need to implement supply chain solutions Malaysia.
What Exactly is Supply Chain Solutions Malaysia?
The meaning of supply chain management (SCM) in general is an activity that includes planning, regulating, and scheduling product flows from procurement to distribution to consumers. With supply chain management, the supply chain is designed in such a way that it can be carried out in the most effective and efficient way. Supply chain management or we usually call it SCM or can also be called supply chain management is a very important field in the business world because it is directly connected to the competitiveness of the company.
For entrepreneurs who are just starting their business, there is nothing wrong with learning and understanding about supply chain management, because by studying and understanding this, entrepreneurs can take the right steps so that the business they run is more advanced.
This understanding emphasizes an integrated pattern involving the flow of goods or services from suppliers, manufacturers, retailers to consumers. Activities between suppliers and final consumers are in one unit without large barriers so that the information mechanism between the various elements takes place transparently.
Benefits of Supply Chain Solutions Malaysia
The benefits of supply chain management within the company in general can provide customer satisfaction, increase revenue, reduce costs, increase asset utilization, increase profits and grow the company. The objectives of Supply Chain Management (SCM) include:
- Achieving minimum costs and maximum service levels. Supply chain management (supply chain management) considers all facilities that affect the goods or services produced and the costs required to meet consumer needs.
- Meet consumer needs and generate profits.
- Can win the market competition. To be able to win market competition, the supply chain must be able to provide goods or services that are cheap, quality, timely, and varied.
- Plan and coordinate all activities contained in the supply chain so that maximum service to customers will be achieved at a relatively low cost.
- Maximizing the overall value generated to meet customer needs and demands and minimizing overall costs such as ordering, storage, and transportation costs.
Through supply chain management, marketing can identify goods or services with characteristics that consumers are interested in. This function must be able to identify all the product attributes that the consumer expects and communicate to the product designer (goods or services). If the product design selection has been carried out and testing has been carried out, the product can be produced.
Supply Chain Management Business Process
Supply chain management will certainly involve other companies, both raw material suppliers and product distributors. When two companies establish a relationship, their internal activities will be linked and co-ordinates between them. For example, the company’s internal activities are linked and influence the internal activities of distributors, on the other hand, it can also be related to retail activities. Finally, internal retail activities relate to and influence the final consumer.
Thus, the success of supply chain management requires individual functions to integrate activities in supply chain business processes and coordinate them. The success of supply chain management also requires human resource support, leadership, commitment to change, understanding the extent to which changes need to be made, agreeing on the vision and core processes of supply chain management, commitment to the need for resources and power or authority to achieve the goals that have been set.