Oct 01, 2022

Developing a Successful Supply chain

  • By John Smith,
Developing a Successful Supply chain

A successful supply chain will help you sustain the needs of your company most efficiently and cost-effectively. Although it seems complicated, the process can be divided into a few broad steps. These steps had been formulated by the Supply chain Operations Reference (SCOR).

This model is made of five stages. It is easy to follow and effectively breaks up the process into digestible pieces.


The first and essential part of any supply chain is to plan where to produce the goods. The company needs to decide how best they can supply their products. It also involves you considering the source and transportation costs.


Once you have planned how you will get your supplies, you need to source these raw materials. For this, you have to contact the suppliers and make effective negotiations. If there are multiple suppliers, you have to plan accordingly.

There are many processes involved in this step. These include managing the supply, keeping a count of what is needed, keeping a check on the company assets, and more.


In this stage, the actual production takes place. Everything regarding the product, from its build to the regulations it must follow, is overseen in this stage. It requires careful measurement in terms of quality, demand, output quantity, and more. This data is also stored by most companies.


Once the product is finally produced, it is time to put it out to the customers. This stage involves you looking for distributors and making sure your customers get what they are looking for. It also involves shipping and transportation costs, warehouse costs, and other logistics.

This stage requires careful consideration as well as tracking of receipts and all costs involved in delivering a product from the inventory to the customer.


Last but not least, you must plan for the return stage of your supply chain. Whether the product is defective or the customer does not like it, they might want to return it.

There are several policies involved in the process, including refunds and picking up of these returned products. There also needs to be expiration dates on required products that can no longer be sold or marketed.

To sum up

To set up an effective and profitable supply chain might seem like an overwhelming task. However, it is very much possible with effective planning. Go through these steps, one at a time, to develop a successful supply chain.

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