Supply Chain Management (SCM) is a vital part of every business, whether large or small. SCM is the active management of the entire supply chain activities that maximize customer value. It deals with the movement of raw materials needed to create a product, inventory management, storage of materials and keeping track of finished goods from where they were processed to the consumers’ destination. Other areas that SCM is interrelated to are procurement, logistics and information technology. Companies should use strategic Supply Chain Management, to optimize the distribution of various products and materials.
Better Supply Chain creates better Business
Supply chain management has a significant influence on businesses. A right SCM can automatically improve customer service. By delivering the right product and correct quantity appeases producers, distributors, and consumers. Consumers also want to know the location they must go to obtain the goods that they want, this is achievable with only an efficient supply chain. Consumers also want a high standard customer support. If the goods are not distributed in time, SCM Company has to assure the consumers that they will get them fast and in good condition. Both large and small corporations should value logistic company because they improve the efficiency of industries, warehouses, and vehicles of a supply chain. Cash flow is also increased because the products are delivered in time, and consumers can purchase their goods.
Productivity advantage and value addition
SCM has allowed businesses today to have both productivity advantage and value advantage. Logistics and Supply Chain Management enables a mass supply of raw materials hence low manufacturing costs resulting to high production of goods. Plenty of raw materials offer mass customization and innovation, therefore, adding value to the product and process.
Minimize Risks
Supply chain management restructures everything from product flow to unforeseen or unexpected natural disasters. Logistics of any business should be wholly managed by supply chain managers who can detect problems and disruptions immediately. Many organizations lack the risk management factor that can be contributed by the right SCM. Businesses that want to achieve sustainability over an extended period will be wise to invest in an advanced and dynamic global supply chain.
