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5 Steps to Developing a Successful Supply Chain

5 Steps to Developing a Successful Supply Chain

Supply Chain Photo by Tom Fisk:

The supply chain is the backbone of any successful business. In order to compete in any industry, it must have a stable and well-functioning supply chain. The supply chain process includes several important functions that are integrated for the benefit of the business.

The supply chain is a long business channel that is difficult to develop, even for investors with large portfolios. Supply chain development can be developed in various ways to create an effective channel. Breaking down the entire supply chain process into key steps makes it easier for entrepreneurs to build effective supply chains. Supply chain development is ensured by managers and supply departments. All managers must achieve a common unified supply chain from producer to consumer.

Supply Chain Operations Warehouse (SCOR)

The Supply Chain Council has a good and effective model that can help companies develop their own supply chains, namely the Supply Chain Operations Reference (SCOR). This supply chain model is one of the most common strategies used by most companies. The SCOR strategy involves using integrated channels and systems to achieve shared care goals. The template adapts to different types of businesses and can easily adapt to different business systems. With SCOR, managers can make strategic decisions quickly. This model integrates the micro and micro business levels to create a unified delivery process. This helps reduce costs and increase overall sales.

The SCOR model clearly defines the supply chain process and what is expected at each stage. Models are highlighted in five levels;

To plan

For a business to be successful, planning and decision making must be done with precision. Supply chain planning covers a wide range of business operations. A company must base its supply chain on its core business. For example, they need to determine whether they make their own products, buy goods from other suppliers, or both. Planning includes decisions about production locations, warehouses, transportation facilities and facilities, production levels, production lines and delivery.

Operations planning helps companies determine resource requirements and supply chain impacts. Managers must ensure that the supply chain is consistent with business strategy, workload, budget, and communications. The plan must be flexible to make adjustments to changes in supply or demand to reduce future costs. Employers should establish a strategy that monitors supply chain performance to determine its effectiveness. Planning is an important step for a good supply chain. This helps determine what resources are needed and what affects the supply chain, such as: B. patterns of supply or demand.


Sourcing includes activities to procure raw material resources for production. Resources is an important step because it determines where the company sources its raw materials. With this in mind, managers should focus on procuring high quality raw materials at the lowest possible prices in the market. Time, quality and quantity are emphasized in this phase.

Suppliers play a key role in the procurement of raw materials. Companies need to focus on sourcing their raw materials from quality suppliers to enhance and maintain their reputation. The supply chain needs to plan the right time for the supply of raw materials to keep production running. An efficient supply chain includes providing the right raw materials at the right time and in the right quantity. Each supply chain chosen by the company must be in accordance with the company's business processes.


In this phase, the business process for preparing the shipment of goods is executed. After planning and implementing the most effective supply management system, companies need to implement their plans. The first stage includes the preparation of the product to be sent for testing, packaging, labeling and release. Before each shipment, the company must ensure that the product meets the specified standards. Storage facilities must be in good condition. Rules and regulations relating to performance, stored information and facilities must be established and adhered to. Businesses should focus on manufacturing and supplying products based on consumer needs and preferences. A good supply chain system must have prompt customer feedback support. Reviews, ratings and reviews help a business determine its strengths and weaknesses. Supply chain management is responsible for creating channels that increase sustainable production throughout the season.


All manufactured goods must be placed on the market. Market requirements vary according to consumer preferences. The shipping phase focuses on the operations that affect the movement of goods to the right consumers. Customer inquiries and orders are processed in the shipping phase. Companies must choose a low-cost transportation and distribution system and bring goods to light markets. Warehousing is important for storing manufactured goods before they are sold and for enabling the production of other products. Businesses can hire service providers for inventory or warehousing functions. The cheapest form of storage has its own warehouse. This saves additional maintenance costs and provides more storage space for more production. The delivery stage includes all the defined distribution points, locations, routes and means of transportation. Payment for finished goods is collected prior to shipment and any import or export costs are the responsibility of the consumer. The best shipping method should ensure that the product arrives at its destination on time and in good condition.


Shipping goods is a long and tedious process. Not all goods sent arrive at their destination in the right condition or time. The return phase concerns all defective products returned by consumers. Goods may be returned on the basis of poor quality or quantity, products delivered in poor condition, defective items sold, preparation for delivery, and other issues that the consumer believes have not been met. To address the issue of regular, cost-containing returns, businesses should implement policies for returns, item status, return inventory, and performance-based expense tracking.

The final result

Supply chain development is essential for any business to compete effectively in any industry. For a business to make significant profits, goods must reach the right market. Good supply chain management facilitates customer satisfaction and delivery of goods at the right time and in the right conditions. A well-functioning supply chain includes all the necessary operations at minimal cost to increase the overall business revenue.