Supply chain management, in the context of eCommerce, is the control of the movement of products and services between establishments. The management and storage of raw materials, inventories for work-in-progress, finished goods, and also the complete order fulfillment process comes all under one roof.

A supply chain is the network of all the people, businesses, resources, tasks, and technological development involved in the production and distribution of goods. It is the planning and implementation of processes needed to manage information, capital, inventory, logistics, and production. An entire supply chain, from the distribution of raw materials from the supplier to the producer to the final delivery to the customer all these procedures are included in supply chain management.

Models of Supply Chain Management

There are six models of supply chain management.

• Continuous flow
• Fast chain
• Efficient chain
• Agile
• Custom-configured
• Flexible

Importance of Supply Chain Management

Supply chain management is a well-known component of most firms and is crucial to business success and also client satisfaction. Here are some major points that will depict the importance of supply chain management:

• Reduce operating expenses
• High-quality customer service
• Strengthen financial position

Reduce operating expenses

Retailers rely on a supply chain to deliver pricey goods swiftly so they don’t have to keep expensive inventories in their stores for longer than required, which decreases the purchasing cost.

Manufacturers also depend on supply chains to accurately and efficiently deliver materials to assembly plants to avoid material shortages and also decrease production costs. Efficient and effective supply chains empower a firm to be more competitive in the marketplace.

High-quality customer service

It will boost customer service, customers expect the product will be delivered on time, in the right quantity and products to be serviced in a timely.

Customer service plays a vital role in any business if the customers will not be satisfied then it will affect your brand name.

Strengthen financial position

The supply chain increases the profit leverage because they assist in regulating and lowering supply chain expenses.

As a result profits of the company rise quickly which is the main concern of the business. It increases the cash flow and speeds up the product flow for customers.

What is Inventory in Supply Chain Management?

If demand and supply are seen as macro processes made up of several decision variables (varying within a reasonable range). A “perfect” supply process would be one that reacts instantly to demand of any quantity. Of course, there is no such thing as an ideal process in real life.

That is why inventory serves as a mediator to achieve equilibrium. This is one of the main reasons why inventory and its management are at the core of supply chain management, a task that is getting more and more challenging as a result of globalization.

Inventory Acts as a Buffer

Inventory has become the preferred buffer due to the extension of supply chains brought on by globalization. Outsourced production is one of the key features of supply chains.

However, because market-facing demands focused on speed have not subsided, inventory’s capacity to fulfill its mediation function has been affected negatively.

As a result, measures related to inventory, such as cash-to-cash and inventory turns, have gotten worse in more international industries, including medical devices, drinks, pharmaceuticals, and CPGs (consumer packaged goods).

Multi-Stage Inventory Optimization with More Sophisticated Algorithms

Supply chains are increasingly focusing on “right-sizing” their inventory rather than just seeking to cut inventory because of the complicated task of finding the sweet spot that satisfies responsiveness requirements without sacrificing (internal) efficiency measures (the more traditional approach).

Such change necessitates a more detailed approach to inventory, one that considers both its shape and function). This implies that decisions must be made to optimize for both the placement of the inventory as well as its size, kind, and position.

This means that firms are continuously trying their level best to upgrade their inventory practices and also are shifting from classical statistical safety stock calculation methods toward more complex optimization algorithms known as multi-stage inventory optimization.

This way, you will know where to position inventory and in what quantities as well. For the efficient management of inventory in one spot, Nvntri is your best shot.

What is the role of inventory in supply chain management?

Managing relationships with customers and suppliers is essential to managing supply chains. The idea of collaborative relationships has frequently been seen as the core of supply chain management.

However, if you put a closer look into supply chain relationships, especially those involving product flows; you will observe that inventory movement and storage are at the core of these relationships.

The majority of the activities involved in managing relationships are dependent on inventory management, transfer, or purchase. As a result, inventory has a crucial part in supply chains because it is prominent.

The ability of inventory in supply chains to facilitate the balancing of demand and supply is its most fundamental function.

Businesses must deal with upstream supplier exchanges and downstream consumer demands in order to efficiently manage the forward and reverse flows in the supply chain. As a result, a business is forced to strive to balance maintaining a sufficient supply of materials and goods with meeting client expectations, which are frequently challenging to predict precisely or accurately. Inventory is a common way to attain this equilibrium.

How to choose the ideal inventory system

One of the most challenging choices you’ll have to make is choosing the ideal inventory system for your business. Moreover, the best choice for this is inventory management software produced by Nvntri. It offers you a range of features that will aid in the expansion of your firm. You can manage many stores from one location, and Nvntri keeps you informed about every aspect of your business. For example, if a consumer cancels an order, you will receive push alerts for some days to collect your goods and ensure that your money isn’t wasted.

Stockouts can negatively impact your business in terms of reduced sales and decreased client satisfaction. Nvntri will protect you from all of these issues by alerting you as soon as your products are out of stock so that you can promptly order more to meet demand from customers.

With a “one-spot inventory management solution,” it is simple to manage many Daraz stores and local stores, transfer merchandise between them, and generate reports to gain greater insights into inventory. Nvntri streamlines the difficult integration process so you can complete it within seconds.

Both desktop computers and mobile devices are compatible with this app. And also it will immediately sync with your account after being installed on your Android smartphone. This means that if you haven’t already included it in your business procedures now is your opportunity.

What are the main issues in supply chain management?

There are some challenges in supply chain management.

• Exceptional Customer Service
• Supplier Relationship
• Costing of raw materials 
• Risk Management

What are the principles of supply chain management?

There are several principles of supply chain management that are listed below.

1. Focus on customer needs
2. Collaboration 
3. Develop information technology
4. Flexibility 

What are the main functions of supply chain management?

The main functions of supply chain management are:

• Integrating the functions 
• Aligning distribution flows
• Designing advanced systems
• Managing and arranging resources