Supply Chain Management (SCM) is a systematic and controlled procurement operation. Procurement usually comprises a diverse range of suppliers chosen according to a conceived ability to supply merchandise at the right price. Essentially, supply chain management is the administration and control of the movement of goods between companies and end customers.
These activities can involve storage and transport of inventory or supplies, monitoring of day-to-day activities, the preparation behind these processes, and blending these different components throughout the supply chain.
SCM performance directly impacts an organization’s general performance. In terms of cost-effectiveness, estimates show that businesses with extended global supply chains have between 80% and 90% of their costs involved in their supply chains. Also, as offshoring makes modern supply chains more complicated, multi-channel distribution and global marketplace emphasize on the importance of SCM.
With rising consumer demand, retailers are under pressure to stock the merchandise in demand or lose consumers to another who can fulfill the same demand. In the case of online shopping, consumers expect excellent service, on-time supply, and convenient return procedures for unacceptable items. Most manufacturers depend on just-in-time (JIT) manufacturing policies. With JIT, constituents must be delivered not only in the nick of time but in the precise amount as demanded.
Omnichannel retailers must discover the best way to blend the occasionally disputing demand between offline stores and online retail. Businesses need flexible and adjustable supply chains that respond quickly. This makes it easy to cash in on the opportunities arising from ever-evolving consumer demands.
The economic environment of the 21st century is extremely aggressive, with sleek, high-efficiency supply chains often redefining the standards of success, average performances, and failures. Large- and mid-sized businesses are often pitted against small and active new ventures, making the implementation of supply chain management systems more crucial.
The supply chain at Walmart offers three examples of advanced technologies implemented by the company to address certain issues.
Walmart follows these directives at the time of implementing any new technology:
Supply chain management is the process of managing the movement of merchandise and services and consists of every procedure that converts raw materials into finished goods.
Walmart has implemented new technology in order to make their supply chain more efficient and improve its performance, which equates to a reduction of operational cost.
Companies that deal with the transportation, storage, or distribution of physical goods can look to the optimization of their supply chain as a seemingly never-ending area of potential improvement.
SupplyPike has created a suite of supply chain software solutions for all your SCM needs. We offer deep insights into your On Time In Full performance, allowing you to trace your supply chain back to the source to find trouble spots.
On Time In Full Dashboard
Our Retail Intelligence software allows you to view all sorts of metrics in easy to understand charts, maps, and numbers. You can track your sales, review ready-made reports, and export your data with ease.
Walmart GRS Sales Forecast
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