Concept of supply chain management

A supply chain encompasses all activities associated with the flow and transformation of
goods and services from the raw material stages to the end user(customer), as well as the
associated information flows . In another words ,a supply chain management is a sequence
of organization , their facilities , function and activities that are involved in producing and
delivering a product or a service. A sequence begin with basic supplier of raw materials and
extends all the way to the final customer. Different companies may have different supply
chain due to differences in size ,type and nature of operation and whether and whether they
are primarily a manufacturing operation or a service operation.

Supply chain management is an essential and a hot topic in business today. The idea is to
apply a total system approach to manage the entire flow of information ,materials and
services from raw material suppliers through factories and warehouses to the end customer.
It is the integration of the activities that procure material and service ,transform them into
intermediates goods and final products and deliver them to the customers. Its basic objective
is to build a chain of suppliers that focuses on maximizing value to the ultimate customer.
Now-a-days ,competition is no longer between companies;it is between supply chain .

Supply chain is one of the most important , strategic aspect of operation management
because it encompasses so many related functions. Whom to buy materials from , how to
trasnsport goods and services , and how to distribute them in the most cost-effective ,timely
manner constitutes much of an organization strategy planning.

#Components of SCM in BBSM

 supply chain management is a network of those businesses that are interconnected with
each other in either the manufacturing of products, or delivering services, that are required
by consumers

It is very important for businesses to ensure two things for their supply chain to be effective,
one is the supply chain should be cost effective and second it should deliver the results on
time

1. Planning
This is one of the most important stages.in this stage the centralized purchase department
analyse the demand for certain new or ongoing product. For the very purpose ,various
data such as sales record,market surveys etc are used. Checking the demand for the
product, checking the viability, costing, profit, and manpower etc., are vital Only after the
finalisation of the plans and consideration of all pros and cons, can one proceed further.
Planning helps to identify the demand and supply trends in the market and this, in turn,
helps to create a successful supply chain management system.

2. Information
The world today is dominated by a continuous flow of information. In order to be
successful, it is essential that a business stays abreast with all the latest information about
the various aspects regarding the market dynamics BBSM always tends to maintain
alignment with the changing market. The planning team regularly assess the market
trends of supply and demand for a product through information which is properly and
timely disseminated by various branches. Information is crucial in a knowledge-based
world economy, and ignorance about any aspect of business may actually spell doom for
the prospects of the business.

3. Source
Suppliers play a very crucial role in supply chain management systems. Its important for a
business to tie up with suppliers that can provide good quality products in a cost effective
way.BBSM being a retailor chain largely rely upon the wholeseller/distributors of finished
goods.`BBSM `provides a wide range of local as well as imported product .they have more
than 1000 suppliers for different items.those suppliers includes the authorizes distributors
of particular product. However for some foreign goods BBSM itself is registered as
authorized distributor so in those cases it becomes supplier itself.
It is crucial that a company procures good quality resources so it can create good quality
products and maintain its reputation in the market. This necessitates a strong role for
suppliers in the supply chain management system.

4. Inventory
For a highly effective supply chain management system it is essential that an inventory is
kept and thoroughly maintained. An inventory means the ready list of items, raw materials
and other essentials required for the product or service.Inventory management is critical
to the function of supply chain management, because without proper inventory
management

7. Transportation
Transportation is vital in terms of carrying and delivering the final product to the market. At
each stage of supply chain , timely transportation of goods is mandatory to sustain a
smooth business process. BBSM has a transportation management system that ensures
zero damage and minimal loss in transit
.

8. Return of goods
 Among the various components that create a strong supply chain is the facility for the
return of faulty/malfunctioning goods, along with a highly responsive consumer grievance
redress unit. As for the customers convenience BBSM have a 7-days return
policy(obviously with certain terms and conditions).this creates a good customer bonding
and also maintain goodwill in the long run

Supply chain of BBSM

Supplier A Supplier B Supplier C

Warehouse

Branch A Branch B Branch C

Customer X Customer Y