Supply Chain: Important Details You Should Know

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Supply Chain: Important Details You Should Know

Posted by: Natasha BomStart
Category: Business
supply chain

“What is the supply chain? And, how does it work?” These questions might pop into your head as your curiosity rises.

Let’s imagine a common scenario that happens in our daily life.

The aroma of your favourite coffee fills the air shortly after the alarm clock goes off and the coffee maker starts whirring.

The supply chain is in charge of transporting those coffee beans from all over the world to your kitchen.

To transport those beans to local vendors while they are still fresh, it takes a great deal of planning, demand forecasting, procurement as well as logistical ability.

Your caffeine-fix options would be extremely limited if you did not have a reliable supply chain in place.

Now, let’s dive deeper into this topic while we’re at it!

What Is Supply Chain Management (SCM)?

supply chain management

Supply chain management entails a number of critical tasks and processes that must be executed in a timely and efficient manner.

It includes conserving fuel and reducing cost. Otherwise, consumers like you will be unable to obtain the product when needed.

The capacity to meet customer demands is predicated on the assumption that everything in the supply chain is done correctly.

And it means executing it correctly the first time — no retakes, no mistakes.

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Supply Chain Management: Definition and 5 Principles You Should Know

The Seven Rights of Fulfilment

The Seven Rights of Fulfilment lead world-class organisations along the supply chain in their drive to offer great service and to please customers.

When you think about it, every order should be carried out in accordance with these seven objectives. 

You must make every effort to deliver a “perfect order” to each customer. 

Doing it correctly the first time keeps them happy, reduces the expense of correcting errors and eliminates the need for additional assets. 

As a result, everyone in the company has a vested interest in achieving perfection.

Only when all Seven Rights of Fulfilment are met can a “perfect order” be delivered. 

To complete a flawless order fulfilment, here is the list: 

  1. The seller must have your desired product available for purchase 
  2. Correctly process your order 
  3. Ship the entire order via the method you specify 
  4. Provide you with a shipping notification and tracking number 
  5. Deliver the entire order on time and without damage and last but not least, 
  6. To bill you correctly.

What are the processes involved in SCM?

supply chain management process

The activities in a supply chain are not the responsibility of a single person or company. 

To make it work, different parties must be actively involved in a variety of procedures.

It is like being in a football game. While those on the fields are referred to as “players,” they do not have complete freedom. 

For the team to be successful, each player has a role – striker, defender, midfielder and so on. Every role must be performed effectively in order for the team to win the match.

Supply chain professionals must play similar roles to win the SCM “game.” 

Each supply chain player must be aware of his or her responsibilities, devise winning strategies and work as a team with their colleagues. 

The SCM team will be able to complete the following processes flawlessly as a result of this:

  1. Planning

Creating effective supply chain strategies is the goal of the planning phase. 

Supply chain leaders must establish integrated supply chain strategies from the design of the supply chain network to the prediction of consumer demand.

  1. Procurement

The purchase of essential raw materials, components and items is the highlight of this process.

  1. Production
supply production

The manufacturing, processing or assembling of materials into completed goods or parts for other products is referred to as the make process. 

Supply chain managers assist with manufacturing and ensuring that key materials are available when needed.

  1. Distribution
supply chain distribution

This process coordinates the flow of goods along the supply chain. 

Transportation businesses and third-party logistics companies ensure that items arrive at their destination at the earliest time and of course, to reach there safely.

  1. Customer Interface

All concerns relating to arranging customer interactions, satisfying their wants and flawlessly completing orders are covered by the demand process.

Benefits of Supply Chain Management 

supply chain management benefits

The rapid growth of the business industry has left positive impacts in supply chain management. 

Therefore, as a business owner, you have to know the benefits and effectiveness of doing supply chain management. 

  • Optimized shipment 

By organizing supply chain management, you can optimize the shipment method at its best performance. It helps you to manage items or products distribution effectively.

  • Low cost 

Did you know that SCM only costs you at a minimal rate? 

How does this happen? 

An effective supply chain management helps to reduce the cost needed to maintain inventory. 

In other words, you have to keep updated regularly regarding your business inventory so that you can manage finances properly.

  • Flawless cash flow 

Supply chain helps you to identify several vital business points such as finding good and reliable suppliers, stringent goods control, inventory checklist, and goods price. 

With this, you may be aware of current situations that are related to the business world. You can plan business milestones ahead to avoid any inconvenience in the future.

  • Better quality control 

When you organize a supply chain, you might have the urge to check your business thoroughly. For instance, control goods quality between you and the supplier. 

You can check the goods they have sent in order to ensure that they are in good shape.

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Order Management System

Why KATSys™ exists?

In the physical distribution of mobile prepaid cards in our early days more than 20 years ago, there was a massive amount of work and learning on the go.

It was a new and revolutionary mobile service that was rapidly spreading on a global scale in the early 2000s. 

To register dealers as prepaid touch points, KAT’s small team had to comb the streets on foot.

To handle the ever-increasing transaction volume, our founder’s entrepreneurial drive to ride the prepaid service growth wave steadily led to positive changes.

For instance, the development of structured daily tasks, new operating procedures, cash and stock management check and balance as well as a basic computerised order management and distribution system that was developed in-house. 

As a result of our principals’ territory expansion awards to KAT in 2014-15, the distribution complexity had skyrocketed.

KATSys™ is now a full-featured distribution management system with tracking, handling, reporting and data mining capabilities – making it ideal for businesses dealing with high-volume, fast-moving commodities. 


KATSys™ is the epitome of the ambition to be the best, where invention is the culture, transparency and management of operations are keys to success and optimising business profitability is communicated like a heartbeat across the supply chain. 

The daily distribution operations are all about efficiency, efficacy, quantification and accuracy.

We have a mandate to deliver absolute visibility, openness, and security across the supply chain for all of our clients through digital solutions. 

With that in mind, we will continuously strive to become the preferred solutions partner regionally by 2025 and worldwide by 2030.

If you are on the same page with us, get in touch now!

Author: Natasha BomStart

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