Pan Furnitures widely need to pay attention to their customer care section. That is the initial step to learn the customers demand, complains, suggestions or satisfaction. They have to improvise on their supply chain management. They have failed many times in stocking the right fast moving product in the warehouse. This can be caused by poor forecasting. Managing a supply chain involves many different aspects, and many times it depends on what particular industry you’re in.
Supply chain management involves the initial manufacturing of a particular product, its distribution, storage and delivery of a particular product. Organizations exist to make, maintain and increase profits and to generate sufficient funds in order to achieve and maintain both liquidity and solvency. This is wealth maximization. To generate profit in supply chain there should be a constant flow of information. Procurement refers to the function of purchasing inputs used in the firm’s value chain, not to the purchased inputs themselves.
The cost of procurement activities themselves usually represents a small if not insignificant portion of total costs, but often has a large impact on the firm’s overall cost and differentiation. By improving purchasing practices, it can strongly affect the cost and quality of purchased inputs, as well as of other activities associated with receiving and using the inputs, and interacting with suppliers. Every organization, be it a service or retail entity needs a robust supply chain management to keep up with the competition. Of critical importance is how a firm manages competition through supply chain alliances and partnerships.
An independent firm on its own many not have all the resources to match its competitors. But by having an upstream and a downstream arrangement of getting the input, processing it into output and then pushing it to the downstream for distribution with effective chain partners, it can face any business challenges. Process integration and other efforts along the supply chain will result in improved quality as higher profit margins shall get reflected in the creation of better facilities for manufacturing, product design, research, enhanced customer service.
The benefits too would be reflected in lower costs. While integration within an organization can be good and well organized, it is the integration with outside organizations that needs careful planning and that is where supply chain management comes into play. If an organization concentrates on its internal operations while ignoring others outside its boundaries, the result will be inefficiency in the movement of its goods and services right from suppliers, to the processing unit and to the end customer.