Which is the most important first step of supply chain?

The first step in every supply chain management process is planning. The first strategic objective of the process is to find the best possible way to meet the final requirement. For the most part, everyone understands what supply chain management is. This obviously consists of managing or purchasing raw materials with 26% of packaging material until the production process and delivering them to retailers through an appropriate distribution channel.

Obviously, this is the overview of the SCM process. But this is not the case. In an SCM process, the task of demand planning is crucial and fundamental to identify and implement in order for that general process to be correct. Implementation is most important, since procurement, operations, warehousing and distribution begin immediately after the demand planner's task is completed.

In fact, a demand planner is the planner of the entire process that links with all the other sections, starting from top to bottom. And based on the planning carried out by the demand planner, other sections work and achieve organizational objectives. Planning is the first step in a supply chain, and it's also vital. Companies should focus on planning their business model well using predictive technology and data acquired through research.

They need to correctly forecast what customers want in order to design their other processes, such as procurement and manufacturing, around it. The planning stage lays the foundation for the rest of the strategies that are to come. Supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. But what exactly are the benefits that the company can derive from efficient supply chain management? First, it helps you develop a good relationship with your suppliers.

When purchasing products, companies must consider the delivery time and how a supplier can meet those needs. The company must contact suppliers who will provide them with quality materials to maintain customer satisfaction. After identifying a source, legally sign a contract with it and move collectively to the next step of managing your supply chain. This stage includes identifying and hiring vendors and suppliers based on the predictions made in the last stage.

If all these steps are not well coordinated and without problems, the company will not be able to make timely and trouble-free delivery to the customer. A supply chain begins with the delivery of raw materials from a supplier to a manufacturer and ends with the delivery of the finished product or service to the end consumer.