Authors: Shreepad Dode, Dr. Rupesh C. Jaiswal
Certificate: View Certificate
The Industrial Revolution has brought about immense changes in the market globally. Since then, we have been seeing an ever-increasing change in demand trends across various industries around the world, and at the same time, the advancements in science and technology over the years have been another reason for the growth and diversification of the global market.  According to sources, the supply chain management market has steadily grown from $15.85 billion in 2020 to $21.95 billion in 2023 and is expected to reach $30.91 billion by 2026. In today\'s world, the growth in population and increasing requirement for commodities, acts as another challenge for the network chain between the manufacturer and consumer. It is very important to manage the involved factors in these chains to maintain proper balance and ensure efficient production at the manufacturer\'s end, effective distribution of these commodities, and timely fulfillment of consumer demands. This project aims to provide a brief understanding of the importance and steps involved in the management of this Demand-Supply chain.
Supply Chain Management is the science that deals with the efficient and economical integration of Supplying, Manufacturing, and Warehousing. It refers to the management of all aspects of the flow of goods or services, right from the procurement of required resources and raw materials to the delivery of the finished goods. Effective Supply Chain management strategies benefit organizations in several ways:
II. STAGES IN SUPPLY CHAIN
The process of Supply Chain Management can broadly be classified into the following stages:
Fig (1) explains the stages in Supply Chain and the general process flow in Supply Chain. These stages are the building blocks of any Supply Chain and each of them has its importance and greatly affects the overall efficiency of the Supply Chain. Hence it is very important to understand each of them in detail.
Planning is the process of balancing the available supply of products against the demand for each of them. The main goal of Planning activity is to make efficient use of available inventory and production capacity. Planners are required to have a good understanding of the customer demands and should also be able to predict the demand for future buckets It is very important to get the correct balance of supply and demand along with a good understanding of the changing demands and the future trends in the markets.
Planning can be broadly classified into three categories according to the period for which planning is done:
Planning is a very important practice for industries like Pharmaceuticals and Life Sciences as there is a large variety in the type of products present, also there is a large network of wholesalers and retailers that need to be supplied with the products regularly. Improper planning can lead to an increasing burden on the manufacturing and distribution units, which may lead to longer request fulfillment time, which may lead to fatal loss. For example, during the COVID-19 pandemic, the pharmaceutical industry saw an epic surge in the demand for various medicines and the Life Science industry also faced many challenges as the demand for Critical care beds and oxygen cylinders. Systematic planning and structured distribution have helped us save millions of lives during the pandemic.
Procurement is the process of obtaining the right material (meeting quality requirements), in the right quantity and in the right amount (as per the requirement of the product) from a reliable source with good service (before and after sale) at a cost-effective price. Different factors need to be considered during the procurement of materials or machines for the production or pre-production stage, some of them are listed below:
The procurement process is very important as the next steps of Manufacturing and Packaging are highly dependent on it. Procurement of semi-finished or raw materials of proper quality at the proper time is important to align the manufacturing process with the demand. Similarly, procurement of desired packaging material at the right time is important to keep the flow of distribution and supply moving forward.
Manufacturing is the process of producing the desired goods that meet the quality standards, with the help of the procured raw material using the available resources. Today, we see the production of a variety of goods is done on a large scale for different industries. However, different products have different constraints that they must adhere to to ensure efficient and effective production and minimize wastage. Some of the common constraints that need to be addressed during the manufacturing process are given below:
Manufacturing is important as it brings together the procured raw and semi-finished materials and gives shape to the finished product that is to be supplied to the market. The goal of the manufacturing process in general is to produce goods in the desired quantity in the right time frame and at the same time make sure that quality standards are maintained. Different industries have different types of manufacturing strategies, but generally, the manufacturing industries can be broadly classified as follows:
a. Branded Manufacturing Industries: These Industries produce their material and have a major Research wing. These industries come up with extensive research and devise products according to the results, which are further tested by them, once everything is found to be in place, these research and products are patented by the companies, following which mass production is set up under the brand's name.
b. Generic Manufacturing Industries: These are the industries that generically manufacture products, that is, the products are manufactured without a proper brand name or logo. These industries have more focus on manufacturing a high volume of products. The volume of batches manufactured decides the size of the industries.
c. Contract Manufacturing Industries: Contract Manufacturing industries are third-party organizations that produce products or components for industries that cannot have the same products produced in-house. Contract manufacturing is done to distribute the load on the production line and also helps industries save greatly on the economic front.
 Warehousing is the process of storing produced goods until they are ready to be distributed to wholesalers and retailers. Warehousing also refers to storing the extra goods produced in the batch as inventory or stock until there is a demand for the same from the consumer. The main goal of the warehousing process is to provide conditions that are suitable for the product to be stored until it is ready for transport. Following are some of the things that need to be considered while storing the products:
Distribution of goods is the process of transporting the product from the manufacturing plant or the distribution centers to the wholesalers, retailers, and consumers. The distribution process is important as reaching the consumer is very important to ensure the cash flow to the industries. The Distribution network needs to be set up in such a way that each order from the customers needs to be fulfilled in minimal time. Following are some of the things that need to be considered while planning the distribution:
III. CHALLENGES IN SUPPLY CHAIN
In this paper, we discussed the basics of Supply chain management. We also had a brief overview of the steps involved in Supply Chain Management, we also had a brief overview about how these steps of planning, procurement, manufacturing, warehousing, and distribution work. We also looked at some constraints and conditions that need to be considered while going through these steps. Along with this brief overview, we discussed some challenges faced during the Supply Chain Management process.
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Copyright © 2024 Shreepad Dode, Dr. Rupesh C. Jaiswal. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.