The elements of Supply Chain Management are mentioned below:
(i) To Maximise Overall Value Generated: To maximise the profitability of the company they have to add value in every stage of the supply chain. Supply chain value is the difference between the final product cost to the customer and the supply chain cost incurred for fulfilling the customer’s need. Supply chain value is directly correlated to supply chain profitability.
(ii) Cost Quality Improvement: To reduce the cost-cutting in supply chain operation and improvise the quality of the supply chain function. Cost and quality should be balanced and optimised in the supply chain.
(iii) To Look for Sources of Cost and Revenue Generation:
Supply chain managers ensure to identify the various sources of revenue generation in the supply chain. The flow of information, funds, and products should be transparent and find ways to generate revenue for the organisation.
(iv) To Minimise Lead Time: Lead time is the time taken between placing the order and delivering the product. One of the major objectives of the supply chain is to minimise the lead time.
(v) To Optimise the Delivery: The purpose of supply chain management is to meet the customer requirements for a promised delivery of product on time with high quality and low cost.
(vi) To Fulfil the Demand: Balancing supply and demand is one of the key challenges for supply chain personnel. The supply chain objective is to fulfil the customer demand through efficient utilisation of resources.