What Is Supply Change Management? | - Business Change ...

Supply change management (SCM) focuses on the entire process of delivering a product to the user. This includes the cumulative effort of several companies to supply the necessary tools and supplies to produce a product. Supply chain management also takes into consideration how companies are able to improve the process within their own organizations to deliver the final product to their customer. Effectively implemented, chemical processing companies are able to manage prices, margins and risks.

However, businesses must take an active management role on how to optimize the customer?s perceived value of the product and sustain a competitive advantage in the industry. This is a conscious effort that must be established by organizations to run supply chains that are efficient and effective in the most the streamed way possible. The activities involved in transferring chemicals to plants include product development, sourcing, manufacturing and logistics as well as creating a system to manage these activities. Chemical companies must take into consideration how to forecast the supply chain models, create a distribution network, production planning and shipment consolidation.

Creating an effective supply chain management strategy connects companies through each process of moving a product to final production. These include how to move and store material to produce the product. In addition, communication is also necessary to allow numerous partners within the supply chain to create long-lasting and streamlined plans to control the day-to-day flow of chemicals and materials through the supply chain process.

Effectively managed, the result will be the ability for several companies to transform raw materials into a final product that is delivered to customers. The management process is created in five stages to guarantee that the entire process is effective. The process includes the planning stages, development, manufacturing the product, logistics and customer returns.

Throughout the planning stage, strategies are established to address how to fulfill customer requirements throughout the process. The main portion of the planning will focus on organizing a profitable supply chain. The development stage includes building a solid partnership with the suppliers of the raw materials to produce the goods for the consumer. This portion of the supply chain also takes into consideration the developing efficient shipping, delivering and repayment processes.

Once the product has been manufactured, the next step is to test, package and deliver the product. The logistics portion of the supply change management takes into consideration how to organize the delivery of the merchandise to the customer. The final stage takes into consideration how to minimize the risk of returns. In addition, the company must also create a plan on how to answer any customer questions on their products.

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Source: http://www.business-change-management.com/2013/03/29/what-is-supply-change-management/

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