A supply chain is a network of suppliers, individuals, technology, organisations, activities, and resources of a business for delivering a product or service. All these entities could be a part of the sourcing, procuring raw materials or equipment, manufacturing, selling, or all logistical processes that ultimately helps to deliver finished goods to the end users.
The meaning of supply chain is a network that comprises a series of steps involved to provide the product or service to the customer. These steps include the process of procuring and transforming raw materials into finished goods and distributing them to the end-users.
The important elements of the supply chain process consist of product development, marketing, operation, distribution, customer service, etc. The stakeholders involved in the process are: producers, vendors, warehouses, transportation companies, distribution centres and retailers.
Effective supply chain management is the key to success. If supply chain management is efficient, it helps in reducing the cost of production and increases profits. If one of the links in this process fails, it might result in increased cost for the company.
Typical of manufacturing companies, supply chain now also extends to other traditional business models. The type of supply chain and its complexity, however, primarily depends on the nature of a business. Like, a business operating on the make-to-order model does not store finished products. Its warehouse thus consists of raw material. Similarly, a business operating in the assembly model requires managing different types of stock.
Considering these requirements, SC has evolved into several different types and its models are followed accordingly. Here is a brief synopsis of different types of SC models.
To explain this supply chain meaning, it ensures stability of supply during high demands. This model of supply chain thus suits manufacturers involved in a single line of products manufactured in bulk.
Businesses that manufacture or sell trendy products that have a short life cycle find a fast model for the suitable supply chain process.
The efficient model of SC is implemented where supply chains require end-to-end efficiency. Businesses operating in highly competitive market thus opt for this SC type.
Businesses involved with operations in assembling and production line find implementing custom configured SC, which is a hybrid of the continuous flow and the agile model.
The agile model suits businesses that are involved in production or manufacturing of items with special order.
A flexible SC allows businesses to keep a balance between periods of high demand and low-volume movements.
Supply Chain Management (SCM) is thus, explained as the management of a supply chain to increase its operational excellence and improve customer value.
With Supply Chain Finance up to Rs.45 lakh from Bajaj Finserv, your SME business can solve cash flow problems, fund blocked payments from debtors, take up a bulk or new order and ensure the smooth functioning of your business.
MSME stands for Micro, Small and Medium Enterprise. It was introduced by the Government of India in agreement with the Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. As per this act, MSMEs are the enterprises involved in the production, processing or preservation of goods and commodities. Vital for economic growth, this sector contributes around one-third of the country’s GDP and generates employment for around 110 million of the population.
It also plays an important role in the socio-economic development of the country as many of these enterprises operate in rural India. According to the Government's annual report of 2018-2019, more than 6 lakh MSMEs operate in the country.
Initially, MSMEs were classified based on two factors - investment in plant/machinery and an annual turnover of the enterprises. However, the Ministry of Micro, Small and Medium Enterprises has recently revised the classification by combining these two factors into a single criterion.
Convert your existing loan | Pay lower EMIs by up to 45%*KNOW MORE
Get up to Rs.45 lakh to upgrade equipment | Pay only interest as EMIKNOW MORE
Get up to Rs.45 lakh to manage operations | Flexible tenor optionsKNOW MORE
Get funds up to Rs.45 lakh | Minimal documentationKNOW MORE