5 Essential Stages of Developing an Effective Supply Chain Network

Supply chain management is the unsung hero that encompasses a wide range of functions that can seem daunting, and is built on the foundation of key business processes. By breaking it down into many key strategic forms, the mechanism can be effectively modelled. The Supply Chain Operations Reference model is an efficient model that helps executives to efficiently address, optimise and communicate supply chain process management.

Stage 1: Plan
It is one of the most critical phases since it includes a wide variety of activities. Every company needs a plan or a road-map and businesses must first decide on their operations strategy and put them into action. A big decision is whether to make a product or part or purchase it from a supplier. One can proceed further only after the finalisation of the plans and analysis of all pros and cons. Planning helps to predict consumer demand and supply patterns and this, in turn, helps to build an effective system of supply chain management.

Stage 2: Source
In supply chain management systems, suppliers play a very important role. Organising the sourcing of raw materials and products requires this part of supply chain management. Therefore, it is important that sufficient quality raw materials be procured at cost-effective rates.

In order to produce high quality goods and retain its credibility in the industry, it is important that a company procures good quality resources. In the supply chain management system in healthcare industry, this needs a strong position for suppliers. The output of the supplier must be measured and payments made to the suppliers as necessary.

Stage 3: Make Original
This step deals with the preparation of development events, product testing, packing and release. Companies must also handle performance rules, data that must be processed, equipment and compliance with regulations.

Stage 4: Deliver
The stage of delivery involves all the phases from processing consumer inquiries to choosing distribution methods and options for transportation. To manage these activities for them, businesses must either manage warehousing and inventory or pay for a service provider. Any trial period or contract period shall be included in the distribution stage, consumers or retail locations shall be invoiced and payments collected, and companies shall administer the import and export specifications for the finished product.

Stage 5: Return
Returns are concerned with the management of all returns of faulty goods, including the recognition of the condition of the product, the authorisation of returns, the preparation of shipments of products, the replacement of defective products and the provision of refunds.
Companies must establish rules for the following:
● Product returns
● Monitoring performance and costs
● Managing inventory of returned product

Healthcare supply chain companies are responsible for stocking and handling inventory with the supplies providers need. Managing the supply chain, however, is not as easy as ensuring ample gloves are available to suppliers. Businesses with a good supply chain management system often put great focus on all the components mentioned, and also ensure that the rules are played by management, as well as the teams at different levels. Profit is the bottom line and it is important that the supply chain does not have any holes to ensure that the company achieves it. Any snag should immediately be dealt with and the weak links fixed or eliminated.

In order for any company to be competitive, patterns need to be carefully observed with regard to demand and supply when executing an effective execution plan. Supply chain process management is required not only for the timely manufacture of products, it is also a very important system to ensure that customer requirements are met effectively.

Also Read: 5 Ways How Machine Learning Helps Optimise the Supply Chain

Also Read: 5 Factors to Achieve Supply Chain Efficiency