Supply chain management & its importance

Supply chain management is broad range of activity used by small and large businesses. It is the process from acquiring raw materials and production through distribution to the final customer. A well-organized supply chain management defines optimizing operations and functionality to be faster and in the more streamlined processes and a more cost-effective way possible.

Supply Chain Management (SCM) is an important part of every organization .Supply Chain Management-related activities such as inbound transportation, outbound transportation, warehousing, and inventory control. The Organizations is able to function at their best capacity to provide and distribute various products and materials efficiently.

Supply chain management creates efficiencies, increases profits, lowers costs and raises collaboration & more. SCM enables companies to better manage demand, carry the right amount of material, deal with disruptions, get more profit and meet customer demand in the most effective way possible. These SCM benefits can be achieved through the appropriate product innovation strategies and software to help manage the growing complexity of today’s supply chains. Supply chain management can enhance customer service, increases profits, creates efficiencies, lowers costs and raises collaboration and boost financial position of business. Other benefits include lower product costs, improved process of integration, and improved product quality.

Customer service is more important than anything else of any business. Customer expects the correct product assortment and quantity to be delivered & products to be available at the right location. Customers also expect products to be serviced quickly. SCM can help ensure that customers are satisfied at all times & there shipments to ensure they reach their destinations safely and on time, which improves the bottom line of business.

Supply Chain Management decreases overall supply chain costs since retailers and manufacturers often depends on supply chain managers to create networks that meet customer service goals at the most affordable rate. Retailers also require supply chains to quickly deliver the right product is supplied to a customer at the right time and place in order to limit inventory holds longer than necessary. Supply chain management further reduces production costs because manufactures require supply chains to deliver product to different plants to ensure proper material supply at all times.

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