Supply Chain Management is the foundational artery of business. It matters to the CEO all the way to the the manufacturer and to the seller. The supply chain management system provides ways to reduce overall costs and improve efficiencies from end-to-end.
Managing the supply chain is a job for the product manager and the supply chain manager, if there is one. The job of the product manager is to track the progress, cost, and efficiency of the product life cycle and the overall supply chain management system. The product life cycle tracks the product from manufacturing all the way to the consumer sale.
Why supply chain management is crucial in business:
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Logistics
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Great supply chain management directly impacts customer service
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Accurate delivery services are key
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Location and timing
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Customer Confirmation
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Inventory Management
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Movement and storage of materials
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Inventory management systems and technology
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Efficiency and Cost
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Ideally reduce production and purchasing costs
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Overall reduce the total costs for supply chain
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Profit and Financial Position
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Control supply chain expenditures
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Reduce fixed costs
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Rate of product flow
‘According to SCM experts, it’s also defined as the design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.
The other areas that SCM is related to are operations, logistics, procurement, and information technology. If companies use Strategic Supply Chain Management, the organization is then able to function at optimal capacity to provide and distribute various products and materials.’ (Click here to read more)
