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What are the eight major processes of supply chain management?

(1) Customer relationship management

The customer relationship management process provides methods on how to develop and maintain relationships with customers. Through this step, managers can identify key customers and customer groups and make them part of the company's business plan.

The purpose is to classify customers according to their value and enhance customer loyalty by providing customers with personalized services specifically targeted at different customers.

(2) Customer service management

Customer service management represents the company's attitude towards customers. This is a critical step in the customer relationship management step in the development of product service packages by the customer team.

Customer service provides customers with the real-time information they want to know about shipping dates and product availability by contacting functional departments such as manufacturing and logistics. The customer service process also includes helping customers understand product applications.

(3) Demand management

Demand management is a process of balancing customer demand and supply capacity. By using the right procedures in the right place, this management predictably matches demand and supply and enables plans to be executed more effectively.

It is important to note that this process does not only refer to prediction. It also includes coordinating supply and demand, increasing resilience, and reducing volatility.

A good demand management system uses end-to-end sales and understands key customer data to reduce uncertainty and provide effective support for the entire supply chain. It also effectively coordinates market demand and production plans.

(4) Order completion

This process of the supply chain not only refers to placing orders, it also includes defining customer needs, designing networks, and satisfying customers on the basis of minimizing distribution costs. customer needs and a series of activities.

Its purpose is to establish a seamless system from suppliers to companies, and then from companies to different customers.

(5) Manufacturing process management

Production process management includes behaviors related to the following production activities: acquisition of raw materials, production, managing the production links of the supply chain, and shipping products out of the factory .

The purpose of this process is to produce as much product as possible at the lowest possible cost within a given time. In order to achieve expected production requirements, planning and execution require the cooperation of supply chain participants.

(6) Supplier relationship management

The process of supplier relationship management is about how to establish and maintain friendly relationships with suppliers. From the literal meaning, it can be understood that this process is similar to the customer relationship management process. Simply put, supplier relationship management is about defining and managing product service packages.

(7) Product development and product commercialization

The process of supply chain management is about developing products together with customers and suppliers and putting the products on the market .

The team responsible for the product design and commercialization process should work with the team in the CRM process to identify customers and requirements, and should work with the team in the SRM process to select materials and suppliers, and manage the production process. Teamwork in the process develops new product technologies based on market needs.

(8) Recycling management.

The recycling management process includes activities related to managing recycling, reverse logistics, and gate control, including managing the supply chain process to avoid recycling as much as possible.

Properly implemented recycling management not only effectively manages defective products in the product stream, but also reduces the amount of undesirable recycled products and enables the reuse of recyclable product parts such as packaging boxes. . Effective recycling management is an important step in supply chain management and enables companies to achieve continued competitiveness.

Each of the eight steps of supply chain management has its strategic significance and operability - in other words, strategic significance means that the company establishes and strategically manages these steps, operability It means that the company performs these steps. We form a collaborative team of representatives from marketing, sales, finance, production, purchasing, logistics and research and development to realize their strategic significance.

This team is mainly responsible for designing these processes of the supply chain at the strategic level and supervising whether they are implemented. This strategic team also needs to pay attention to identifying which partners can be integrated into the company's supply chain. The operability of each process is the specific actions taken by managers in each function.