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Supply chain concept - Supplier management

Purpose of supply consists of the range of activities and organizations through which materials pass during their journey from entry-level suppliers to end-users.

Supply chain structure - The simplest way to represent the purpose of a supply is to show how a product moves through a number of organizations. If we consider the process of moving materials from the point of view of a separate organization, then the types of activities that are performed before it (moving materials into the organization) are previous activities, and those that are carried out after the materials leave the organization are subsequent ones.

Since each product has its own supply chain, the total number of target configurations is very large.

The individual supply chains connect to each other to meet the demands of a wide variety of customers.

Supply Objective Benefits, Supply Chain Barriers, Quality and Added Value

Supply chains arise not only to improve the quality of customer service, but also to bridge the gaps that arise when suppliers are located at great distances from customers. This allows you to perform the operations that are being performed. or can be performed in locations located at a great distance from consumers or sources of materials. The supplier is one of the urgent and complex tasks of procurement logistics in today's highly competitive environment. The supplier performs a vital procurement management function.

In the process of managing suppliers, the following functions are performed:

• Formation of a supplier management strategy that supports the overall business strategy of the enterprise;

• constant monitoring of the market for materials and services;

• search and evaluation of suppliers, maintaining a database of suppliers;

• checking the reliability of suppliers, their financial stability;

• certification of suppliers;

• development of partnerships with suppliers;

• placing an order for the purchase of materials and their delivery;

• monitoring the activities of suppliers;

• vendor benchmarking.

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