After completing the functionalities of Planning department we shall now move on to the main nerve of the business i.e. Supply Chain Management simply SCM.
Here I am not going in very specific and theoretical definition of SCM. I am just explaining the general meaning of SCM in industries.
SCM as the name suggests is managing of the Material flow in and out of the industry.
In general sense, broadly SCM flow can be shown as below
Purchase:- Material required for the production of the Products and smooth running of industry is procured by the Purchase department. Managing suppliers to get least negotiable purchase price and at the same time ensuring the delivery date of the supply as per the requirement of the user department is the key role of purchase department.
Stores:- Storing the various type of materials, spare parts, machines etc in a proper common place and maintaining the stock of the materials is the role of the Stores. Every Material that comes in or goes out must be under control of Stores, and stores have to maintain proper records of each of the materials. Ensuring the stock of critical items to be always present in the stores is one of the major task of the stores.
Logistics:- Managing the transportation of goods which are coming in and also going out is the key role of logistic department. Apart from arranging of vehicles for in coming and out going materials, maintaining documents related to same comes under responsibility of this department. This department is linked with Purchase and Stores for ensuring proper delivery of the materials inside the industry, then with Sales and Marketing for the despatch of Products to the Customers as per the Delivery schedule in the Sales Order.
We shall look in depth with each of the departments and its roles and responsibilities in an industry. SCM plays a major role in maintaining the proper functioning of the overall functions of the all the departments. Hence effective and also powerful SCM is must for any successful Industry.
Here I am not going in very specific and theoretical definition of SCM. I am just explaining the general meaning of SCM in industries.
SCM as the name suggests is managing of the Material flow in and out of the industry.
In general sense, broadly SCM flow can be shown as below
Purchase:- Material required for the production of the Products and smooth running of industry is procured by the Purchase department. Managing suppliers to get least negotiable purchase price and at the same time ensuring the delivery date of the supply as per the requirement of the user department is the key role of purchase department.
Stores:- Storing the various type of materials, spare parts, machines etc in a proper common place and maintaining the stock of the materials is the role of the Stores. Every Material that comes in or goes out must be under control of Stores, and stores have to maintain proper records of each of the materials. Ensuring the stock of critical items to be always present in the stores is one of the major task of the stores.
Logistics:- Managing the transportation of goods which are coming in and also going out is the key role of logistic department. Apart from arranging of vehicles for in coming and out going materials, maintaining documents related to same comes under responsibility of this department. This department is linked with Purchase and Stores for ensuring proper delivery of the materials inside the industry, then with Sales and Marketing for the despatch of Products to the Customers as per the Delivery schedule in the Sales Order.
We shall look in depth with each of the departments and its roles and responsibilities in an industry. SCM plays a major role in maintaining the proper functioning of the overall functions of the all the departments. Hence effective and also powerful SCM is must for any successful Industry.
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