There are five basis components of supply chain management.
- Plan : This is the strategic portion of supply chain management (SCM). You need a strategy for managing all the resources that go toward meeting the customer demand for your product and services.Source : Choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.
- Make : This is the manufacturing step. Schedule the activities necessary for production, testing, packaging the preparation for delivery.
- Deliver : This is the part that many insiders refer to as logistics. Coordinate the receipt of orders from customers, develop a network of warehouses, prick carriers to get products to customers and set up an invoicing system to receive payments.
- Return : The problem part of the supply chain. Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.