Supply Chain Management helps for Chain Outlets Shop

June 27, 2011 - PRLog -- Supply chain management is a term which is used to describe a medium to large network of businesses that are interconnected. The businesses are generally ones that deal with services and provisions of various products. This supply chain includes everything from the creation of products, raw food storage, and finished goods. A slightly easier way of defining and describing the vague term is as a designing, producing, controlling, transporting, and monitoring of goods and services and building a stable network of businesses to help ensure these goals are carried out.

There are many many useful advantages to a supply chain type of management. The business types help address problems such as inventory management, incorrect information and demand signals within the supply chain, maximizing distribution, whether it be train, cargo ship, plane, or truck, and issues with the payroll and exchange of funds.

The chain of supply actually begins and ends with the customers themselves. They start the chain by first deciding on an item or service to purchase from a company, whether it be bedsheets or maid services. The products or services and their exact quantities are then ordered by the specific company who either then begins manufacturing it or the process of shipping it.

The company's very next step is planning, which involves creating a production plan that will ensure that the customer's orders are paired with other orders and then manufactured in time to ship them out. Generally, there are highly trained individuals put in charge or overseeing this aspect of the chain to ensure it is a success.

If the product or item has to be manufactured by the company, then the next step after planning is purchasing. The departments that are in charge of purchasing the raw materials that are needed will receive a list of things which are needed and they will take the necessary steps to obtain them in time. They send purchase orders to their trusted suppliers, who ship them the needed raw materials by a specified date.

Once the above mentioned raw materials have been received by the purchasing department, they are then checked against the inventory and then checked for damages. If the order to correct and complete, the materials are then moved to the department's warehouse. The materials are then kept safely in said warehouse until they are needed for production.

The production stage is next, in which a production plan is devised and the raw materials which are being stored in the warehouse are moved to a safe production zone. Then, the products and goods that were ordered by the company's customers are produced and manufactured and then taken to a second warehouse where they await delivery.

The second warehouse, which is in charge of storing and shipping out finished products, receives them from the production department and then effectively determines the best method of delivery. The goal is to efficiently ship out the items so that arrive both on time and in one piece. Finally, the customer receives his or her item along with a detailed shipping order.  For more information visit http://www.gofrugal.com/supply-chain-management.html

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GoFrugal Technologies, specializes in retail, retail distribution, pos, online store and supply chain management solutions.