Supply Chain Management Process: Definition, Objectives

Understanding the supply chain management process is an essential part of business, especially in the restaurant and culinary industry. SCM, or supply chain management, holds a crucial portion.

The supply chain management process in the restaurant business determines the smoothness of operations. This process itself begins from procuring raw materials to transporting them to customers.

To better understand SCM or supply chain management, here is a comprehensive discussion.

Definition of Supply Chain Management

Source: Freepik

Before discussing its process, it's crucial to understand what SCM or supply chain management is.

Supply chain management, based on the definition by Heizer and Render, is the activities and processes involved in managing raw materials to finished goods. This also includes the distribution process to customers or consumers.

In the restaurant business, for example, SCM or supply chain management starts from procuring food ingredients. Then managing these ingredients in the cooking process. Up to serving or delivering them to consumers.

A series of activities like these are included in the supply chain management process.

Objectives of Supply Chain Management

Source: Freepik

The supply chain management process has objectives. One of them is to coordinate supply and demand effectively and efficiently. So that any potential issues can be easily addressed.

Potential issues may include:

1. Issues in managing the procurement of materials
2. Material supply and potential risks
3. Relationships with consumers or customers
4. Levels of outsourcing

Additionally, the strategic objective of the supply chain management process is market dominance. So that the business can operate smoothly and profitably.

Sequence of the Supply Chain Management Process

Source: Freepik

The sequence of the supply chain management process begins with several stages. Here is the sequence:

1. Consumers
2. Planning
3. Procurement
4. Inventory
5. Production
6. Transportation
7. Product Returns

Supply chain management starts with consumers; where consumers place orders for desired items. The next process is production planning. Then procurement and inventory of raw materials before starting production.

The finished products are then delivered to consumers, in the transportation stage. This process continues if consumers return items that are not suitable.

The supply chain management process for restaurants will be more manageable with the Smart Restaurant Technology from ESB. From receiving orders from customers to transportation, everything can be effectively and efficiently managed with this technology.