Universidad Tecnológica de Nuevo Laredo

-Supply Chain Management-

Melquisedec Flores Gutierrez
-Types of control in the supply chain. .-
Lesly Mariam Salinas Vielma
5419100335

Degree: 5° Group: D
Logística LACS BIS
30/07/ 2021

MANAGEMENT CONTROL

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Supply chain management is the management of the entire production flow of a
product, from obtaining the raw material to the delivery of the final product. SCM is
important to today's companies as it allows them to manufacture and ship only as
many goods as can be sold, helping to reduce excess inventory. There are six
components that allow proper supply chain
management:

• Planning. Businesses must plan and manage all

the resources necessary to meet customer
demand. Therefore, it is important that they
determine the metrics that will ensure that the
supply chain is efficient, effective and provides
value to the end consumer.

• Supply. Organizations must choose the vendors who will provide the raw materials
to create their products. Once under contract, SCM managers must use a variety of
methods to monitor and manage the relationship with suppliers.

• Manufacturing. Supply chain managers coordinate the activities required to accept

raw materials, manufacture product, test quality, package shipment, and schedule
delivery. Most companies measure the quality, production and productivity of workers
to ensure the creation of products that meet the quality standards required by the
market.

•Delivery. It involves coordinating orders, scheduling deliveries, dispatching loads,

billing, and receiving payments. It relies on a fleet of vehicles to ship products to
customers. Many companies outsource much of the delivery process to specialized
firms, especially if the product requires special handling or will deliver at home.

• Return. It is based on the recovery of defective, excessive or unwanted products. If

the good is deficient, it needs to be reworked or scrapped. If the product is unwanted
or surplus, it must be returned to the warehouse for later sale.

• Qualification. They are the support processes that allow companies to monitor
information throughout the supply chain and ensure compliance with all regulations.

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They include: finance, human resources, information technology, facilities
management, portfolio management, product design, sales, and quality assurance.

Software SCM

There are two main types of SCM software: planning applications and execution
applications. Planning applications use advanced algorithms to determine the best
way to process an order. The execution applications keep track of the physical state
of the goods, the management of materials and the relevant financial information of
the different parties involved.

Some SCM applications are based on open data models where there is an exchange
of data both inside and outside the company (this is what is called extended
company, and includes the main suppliers, manufacturers and end customers of a
given company) . This shared data can reside in different database systems, or data
warehouses, at different sites and companies.

FINANCIAL CONTROL

Supply chain or supplier financing can be defined as “a collaboration between two or

more companies, including external service providers, to jointly create value through
the means of planning, directing and controlling
the flow of financial resources. in the network
organized for this purpose ”. Supply chain
finance is a vehicle for optimizing supply chain
costs. This mutually benefits buying companies
and their suppliers. Simply put, supply chain
finance is a relatively straightforward way for a
buyer to manage their working capital and
liquidity; for example, by optimizing the days of
invoices payable, while ensuring that financing is available to those suppliers from
whom you have purchased goods and services.

The study of supply chains in recent years has shown the enormous importance of an
adequate management of the different tasks associated with the flows of goods and

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services of companies. The importance of treating and financially supporting the
network of suppliers (first, second and third level) and the rest of supplies
(warehouses, distribution channels, production line and end customer) as a strategic
asset is increasingly relevant.

The Finance, Logistics, Operations and Purchasing departments will have to work
hand in hand to optimize their resources and add value to the way in which the
financing of the company's supply chain is managed. In recent years, it has been
reflected that operations and logistics managers with a financial perspective of the
supply chain obtain better results thanks to their decision-making and communication
skills with the managers of the financial areas and the general management of the
company.

OPERATIONS CONTROL

Operations related to manufacturing, distribution, marketing, sales, design, finance

and technology are articulated in the supply chain. In addition, different actors
intervene in the supply chain, such as suppliers of raw materials, manufacturing and
assembly companies, operators of logistics services (transport, storage, distribution,
packaging, assembly, etc.). In all operations and between all the links in the chain,
data is generated and information is exchanged that must be properly processed so
that the processes can be completed without interference.

Operations that can be considered

key in a supply chain are
transportation, warehousing,
inventory management, and
production and supply planning. But
in a highly competitive environment,
it is necessary for these operations to
be aligned with other departments of
the company, such as sales and
marketing. In addition, it is essential

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that the company management also knows the details of the supply chain and is
aligned with the objectives to be achieved.

Talent in an organization must be linked, without a doubt, to the use of information

and communication technologies. Therefore, it is necessary for staff to know how to
deal with the technological tools that facilitate operations in a supply chain. For this
reason, it is convenient to deploy training actions that allow human teams to
implement, use and get the most out of technological solutions that, in turn, will help
to facilitate work in different areas, improve productivity and offer the client better
service.

CONTROL DE CALIDAD

The quality system in the supply chain implies a series of advantages for the
company that implements it. The greater profitability is one of them, but there are also
other reasons in terms of gain in competitiveness that make its application essential.

The quality system must meet certain standards throughout the supply chain, which
translates into shorter delivery times. This results in greater customer satisfaction and
consequent loyalty.

On the other hand, good supply chain management implies developing a series of
preventive actions that the company must apply to avoid supply problems.

The quality system also considers the knowledge of the entire chain: the company
must know its supplier very well, but also the supplier of its supplier and the supplier
of the supplier of the supplier, and so on. This knowledge will allow us to be alert to
the possibility of one of them falling and to be able to react in time by substituting the
supplier. Otherwise, our production may fall due to the lack of an input, an
intermediate good or a product that we need.

We must know these issues very closely, as this will ultimately lead to a good safety
stock policy. These preventive actions ensure the supply chain and its continuity.

As for the physical distribution, through which the products are brought to the
customer, it is important to always see new ways of transporting merchandise. This is

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valid for the entire chain, which involves the warehouse of finished products,
transportation, national or international physical distribution.

A company can belong to one or more chains that ensure that their products arrive on
time, that they do not have problems of knocks or losses or other inconveniences that
the transfer may cause.

The role of supply chain management software

Technology is critical in managing today's supply chains, and ERP vendors offer
modules that focus on key functions within SCM. There are also business software
vendors that specifically focus on SCM. Some important areas to consider include the
following:

 supply chain planning software for activities such as demand management.

 supply chain execution software for activities such as daily manufacturing
operations.

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 supply chain visibility software for tasks such as detecting and anticipating
risks and proactively managing them.
 inventory management software for tasks such as tracking and optimizing
inventory levels.
 logistics management software and transportation management systems for
activities such as freight management, especially in global supply chains.
 Warehouse management systems for activities related to warehouse
operations.
 Infor, Blue Yonder (formerly JDA Software), Manhattan Associates, Oracle,
and SAP are recognized providers of supply chain software.