The process of supply chain management involves the entire material movement process within a company from materials, information, and finances along with the process that takes them from the manufacturer to the wholesaler and retailer, and finally to the customer. This area of a company involves the coordination and integration of these flows within and among companies. The perfect scenario for any effective supply chain manager is to reduce inventory if products are available when needed. After all, reducing inventory without new products available is not an effective or acceptable goal to have unless yours is the type of company that only has inventory on hand when needed to fill orders. Although that may be good for some products, it's not a good practice to undertake in most cases.



Sophisticated software is in place as a solution for successful supply chain management with one of the most popular ones being SAP. The position of a supply chain manger involves coordinating and monitoring the flow in three critical areas: product flow, information flow, and finances flow. The product flow is the direct correlation of product movement from supplier to customer as well as any return or goods or service needs. The information phase of supply chain management involves the transmittal of orders and delivery status updates. With n the financial flow, you will find credit terms, payment schedules, consignment, and the title and ownership arrangements.

With all of the sophisticated equipment involved with supply chain management, the job of a supply chain manager is quite involved indeed, and the timely and efficient delivery of goods depends upon the supply chain manager knowing exactly what the customers require, assuring that his staff of employees enters the orders properly so that the goods will arrive at the customer's destination in a timely manner. The three levels of flow within supply chain management make the process flow within an efficient and self-directed guideline, but the supply chain manager must assure that everyone within the supply chain product movement phase follows those guidelines. Any delays or errors within this area fall on the shoulders of the supply chain manager, and it is the manager who will have to account to the customers for any unnecessary or unpredicted delays in the delivery of their goods. The supply chain manager takes responsibility for getting the goods from the wholesaler or retailer to the customer, and he must do that within the guidelines requested by each individual customer.