Functions of Supply Chain Management-What are the Functions of Supply Chain Management-What are Supply Chain Management Functions

Functions of Supply Chain Management

Supply chain management is based on the idea that almost every new product comes from the work of a supply chain (SCM). Even though supply chains have been around for a long time, most businesses only recently realised how important they are. In this case study, we show how supply networks that work well help the company reach its goals. Also, they show how danger and doubt work. The next step is to bring together important resources and partners. Lastly, you need to be able to change when things change. Read on to learn more about functions of supply chain management and become the subject matter expert on it.

The supply chain is in charge of the logistics and planning that are needed to get a product to the customer. To put it another way, it includes everything that happens to a product between the time it is thought of as a raw material and the time it is sold. It includes everything from getting the raw materials to giving a customer the finished product. As a result, supplying, making, storing, and distributing are all parts of the supply chain, and each part needs to work with the others.

Top 12 – Functions of Supply Chain Management

Inventory management is one of the most important tasks of SCM. This means keeping an eye on the stock, guessing how many items will sell, and setting a target stock level. Managing inventory well can help a business save money while still giving customers what they want. A company’s operational costs can go down if its supply chain works better, which can help its bottom line. From coming up with ideas to promoting products, the whole supply chain can benefit from it. We’ll look at the functions of supply chain management and talk about the related topics in this area.

Helping out Customers

During the buying process, a customer will talk to a person from the company that is selling the product. Most businesses think that this kind of interaction with customers is important for keeping them happy and getting them to come back. This person is in charge of completing orders, taking care of returns, and dealing with customer service issues.


The first step is to find vendors with the right products and services. Getting goods and services takes careful planning. Unlike purchasing, this requires an organization to do a number of things, like manufacturing, managing inventory, and selling, before it can meet a customer’s needs.


Logistics is the study and practice of organizing the flow of goods from where they are made to where they are used. The logistics is the organisation and coordination of getting goods, materials, and supplies from one place to another. Logistics is a military term that means getting supplies and equipment to the troops who need them.


As part of this role, you will need to make plans for the whole supply chain, from the first order to the final inventory count. To reach a goal, you must first plan out how to get there.

Planning needs foresight, or the ability to travel through time in your mind. People think that being able to plan ahead, also called “foresight,” was a driving force in how humans evolved.


Transportation is all the different ways that people and things can get from one place to another. You will be in charge of moving things from one place to another, which could mean crossing national borders.


To manage distribution, you have to keep an eye on the product as it moves from the factory or wholesaler to the store. In this large group, packaging, inventory management, warehousing, the supply chain, and logistics are all included. The person in this job is in charge of making sure that customers get their packages.


The purpose of this task is to find and choose the right vendors. To get the lowest overall cost, businesses must use strategic sourcing practices. Before production, the “sourcing” part of the supply chain takes place.

The process of sourcing is figuring out what goods and services a company needs to run. Purchasing is also a part of sourcing because it involves finding a provider, negotiating a contract, and figuring out how effective a provider will be in the long run.

Continuous Improvement

Supply chain optimization and improvement is an ongoing job that requires the use of cutting-edge tools and methods. Products, services, and procedures are always getting better. The goals of such efforts could be both “incremental” and “breakthrough.”


The duties of this job include setting up production schedules and keeping an eye on machines and workers. The word “production” refers to the process of making a finished product by using both physical and intangible resources. The end result should be something that has real value and helps people.

Inventory Control

Maintaining the right amount of inventory to meet customer needs while keeping costs low is a big part of this job. The process of checking a store’s stock is called “inventory control” or “stock control.” It is the practice of making sure that a company has just the right amount of stock.

Assurance of Quality

The main job of this position is to oversee all quality assurance activities and make sure that all goods and services delivered meet the standards that were promised. Quality control groups check every part of the manufacturing process to make sure it meets standards.

Storage Management

Storage management is everything that is done to keep track of a data storage system’s resources, software, and hardware. The person in this job is in charge of making sure everything works in the warehouse.

Frequently Asked Questions

What Kind of Products are Useful in the Supply Chain?

Functional products have long product life cycles and steady demand, while the market for novel items is very hard to predict because they have short product life cycles, a high level of innovation, and fashion content.

Why is having a Good Supply Chain Important?

The cost of basic goods has gone down thanks to the modernization of supply networks, which has raised living standards. This is because products can get to stores and customers faster when the supply chain works well.

The main goal of retail supply chain management is to control the flow of goods from raw materials to the final consumer. Supply chain managers optimize activities on the supply side to cut costs, speed up delivery of products, and gain a competitive edge.


Supply chain management that works well leads to more satisfied customers, lower costs, and better overall performance. Businesses can improve their supply chain operations and gain a competitive edge if they understand and improve these processes. Continue reading to become an expert in functions of supply chain management and learn everything you can about it. For more information on the fundamentals of supply chain management subject, keep reading.