Suppliers to Manufacturers:

The most complexes, yet, most significant phase in any production is the movement of raw materials from the supply point by the suppliers to the manufacturing unit. Therefore Recognition of the right type of suppliers is the key to effective SCM system.

Can you envisage the various agencies and steps that are involved in this total system? Let us see them one by one.

1.      What is the raw material that ought to be moved?

2.      What is the cheapest and the best available along with the suppliers?

3.      Where is it available?

4.      What are the credentials of the supplier?

5.      What is the mode of transport being used for the move?

6.      Is it cost effective?

7.      What is the time factor included in the movement?

8.      Does weather and climate play a chief role in moving the raw material?

9.      What are the terrain conditions in the areas from where it ought to be moved?

10.  What is the distance involved?

11.  Is it of acceptable quality?

All of these have to be addressed before one plan for movement of these raw materials, that too in great detail. That is what is an effective SCM system to be followed by every firm.