The formulation of supply-chain objectives is the first step in planning and designing supply chain management software. The objectives would clarify what must be achieved by having the supply chains. Basically, any business firm seeks to realize the following main objectives through its supply chain:
Coverage of the target market.
Ensuring that the consumer goes through minimum exertion in procuring the product.
Ensuring that the firm is able to carry on with its manufacturing activities, confident that the supply chain will take care of the distribution job.
Ensuring that the distribution is cost-effective.
In each of the above areas, the firm specifies the precise level it seeks to realize. The intensity of market coverage sought, the service level sought to be maintained and other objectives will naturally vary from firm to firm. And they will flow largely from the marketing objectives of the firm. It can be easily seen that, just as the marketing objectives determine to a large measure the supply chain objectives, the latter determines the kind of supply chain design to be opted for. With the supply chain objectives, the broad contours of the supply chain design to be adopted also get fixed.
The supply chain designs of firms will differ from one another if their marketing objectives differ from one another. The next step in working out supply-chain management software is the clear identification of the functions to be performed by the supply chain. It must be noted that supply chain functions must be identified in the specific context of the concerned firm in order to get a practical direction in working out the supply chain management software for the firm. Obviously, supply chain functions have to be in tune with the supply chain objectives of the firm.
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