Supply chain Management works on the basis of three concepts that are interconnected to each other very tightly. These three concepts are:
- Network Structure
- Business Processes
- Relationships that the business in focus wishes to lead and coordinate.
- Relationships that are non-critical for the business in focus, but which still should be monitored in order to ensure that the activities are completed by the other businesses involved in the network.
- Relationships that the business in focus does not seem to be critical or worth sacrificing management or monitoring resources on.
- Relationships to other supply chains. A business can simultaneously be a supplier for several internally competing supply chains. These relationships are not viewed as part of the relationship with the actual supply chain, but can, of course, have an important influence on the supply chain’s effectiveness and competitiveness.
- Order Processing: In this process all the tasks related to the completion of the customer’s orders, including placement and receiving the order, keep a credit and quality check, actual overheads and the method of the distribution. All these activities come under order processing.
- Customer Services: all the services that are being provided before, during and after the transaction has been made falls under this category. Service of customer support is one such example.
- Distribution: After processing the order and making the service, it is necessary to find the modes of its delivery to the ultimate consumer. Here the chain of physical distribution is followed to reduce the burden and cost. Direct selling and one to one selling are some examples.
- Product Development: it is not necessary that the product recently created will get immediately noticed by the customer. The organization needs to follow certain methods to bring it to the customer’s notice.
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