What is the Supply Chain Management process?

Supply chain management is a necessary process that ensures the business is seeing success at all ends. Professionals working in supply chain management jobs are responsible for monitoring various aspects of the supply chain. From design and planning to manufacturing and distribution, all activities are part of different stages of the supply chain. The end objective of the entire supply chain management process is selling products and generating revenue.

Creating valuable products that are in line with the buyers’ demands, maintaining a competitive infrastructure, and leveraging global logistics, are all significant parts of ensuring that the supply chain management works in favor of the global performance of the business. While logistics is a considerable part of the supply chain, the process is much more complex and requires immense expertise to run smoothly.

This is why getting a PGP in Digital Supply Chain Management is extremely important for anyone looking to become a supply chain manager.

How does Supply Chain Management work?

Companies hire supply chain managers to ensure that their business runs smoothly in the most cost-efficient way. And when these professionals have a supply chain management degree, they know how to carry out the supply chain management process perfectly and which model to use that would be ideal for their company.

The digital supply chain process ideally works as follows:

  • Planning

Every good thing begins with a solid plan. And so, planning is the initial and most crucial step in the supply chain management process. This plan should work toward creating a product that solves customers’ problems.

Planning is also essential to determine whether your company has the resources to devise a strategy to solve the problem while generating maximum profits. So planning will involve strategizing for a solution, and if such a product or service is possible, then creating the ideal design for it.

  • Sourcing

Once the plan is ready and green-lit by all the stakeholders and management of the organization, it is time to develop the product. Sourcing or developing the product is when the logistics and supply chain management start bringing in the raw materials and equipment. This is also the stage at which product prototypes are created.

The supply chain managers need to have a strong knowledge of the market and what will work best at the moment; plus, they need the right connections with suppliers to get the best quality materials at the right price.

  • Manufacturing

The next step is manufacturing the products according to the final design. While this is a massive step in the supply chain process, the manufacturing process should go smoothly if the previous two steps have been carried out correctly.

In this stage, the product is just manufactured according to the plan using the raw materials and equipment, and then they are prepared for delivery. Testing the products and packaging them neatly is also a considerable part of the manufacturing process.

  • Delivery and Logistics

Now that the product is ready to be delivered, it’s time to initiate the delivery stage. The product moves to various locations. The manufacturer sends the package to suppliers. It could be delivered directly to the customer or go to a retailer.

Logistics are involved in delivering vast quantities of products from place to place. Suppliers move the products from warehouse to warehouse, regular quality checks are performed at intervals, and an invoice system is set up to receive payment.

  • Returning

While not applicable to all products, this stage is still an essential part of the digital supply chain. In this stage, all the defective or damaged goods are returned to the company, so there must be a system to accept the goods and send them back to the manufacturers for fixing.

This is also the stage where the company has to answer customer queries and handle their complaints regarding the products.

Why are Supply Chain Management jobs important?

Supply chain management is a bridge between the maker of the products and the consumer; therefore, it plays a vital role. Well-certified professionals carrying out these jobs make the supply chain management process more efficient and less likely to make mistakes.

Here are the benefits of logistics and supply chain management jobs:

1.  Profits the business

When a proper supply chain is in place, it boosts the business’s profit. The profit is directly linked to sales a company makes. So when supply chain management ensures smooth sales operations, the yield is automatically created.

2.  Cost control

Supplier relationships are a huge part of supply chain management. So when good relationships are built with suppliers, the company is more likely to get raw materials and equipment at a lower price, reducing the overall cost of production.

3.  Improves customer service

There is a steady stream of customer interaction with supply chain management. First, they get first-hand information on the customer demands and feedback, and then they can work on improving the products and services.

4.  Makes operations more efficient

Proper planning and timely sourcing make the entire supply chain operation efficient. As a result, production time is saved, and fewer errors are made, reducing the wastage of resources or products.

5.  Teaches transferable skills

These skills learned with the help of a supply chain management degree, or the ones you pick up on the job, are transferable skills. This means you can take these skills outside your current career, which would still be relevant in other industries.

What is the Logistics and Supply Chain Management’s salary?

According to, a supply chain manager’s average salary can fall between $104,390 and $135,395 per year. Additionally, a senior supply chain manager in the US earns $156,584 per year. So the more qualified you are, the better your chances of getting a higher salary.

In conclusion

Supply chain management ensures the success of business operations at an end-to-end level. To get the company successful on a global scale, the supply chain management has to ensure the smooth running of the supply chain process at all stages.

The five stages in the supply chain process are:

  • Planning
  • Sourcing
  • Manufacturing
  • Delivery and Logistics
  • Returning

Doing a supply chain management certification will ensure a high salary along with skills that are transferable to other industries worldwide.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button