This is the strategic portion of SCM. Companies need a strategy for managing all the resources that go toward meeting customer demand. Planning involves:
Effective supply chains typically rely on five foundational building blocks, often referred to as the "Plan-Source-Make-Deliver-Return" model: Bajaj Finserv Fundamentals Of Supply Chain Management fundamentals of supply chain management
: Developing a strategy to manage resources and satisfy customer demand with maximum profit. This is the strategic portion of SCM
Nothing happens if you don’t have the raw materials. Purchasing (or procurement) isn’t just about shopping for the cheapest price; it’s about relationship management. In a globalized world, a company’s reputation is tied to its suppliers. If a supplier uses unethical labor or low-quality materials, the brand at the end of the chain pays the price. Strategic sourcing ensures that the "fuel" entering the engine is both sustainable and reliable. 4. Distribution: The Nervous System Nothing happens if you don’t have the raw materials