Supply Chain Management
- The supply chain management encompasses all activities associated with the transformation of goods from the raw material stage to the final stage.
- It involves planning, design and control of the flow of material, information and finance.
Why is SCM strategy important for an Organization?
- Supply Chain Strategies are the critical backbone to Business Organizations today.
- Effective Market coverage, Availability of Products at locations that hold the key to revenue recognition depends upon the effectiveness of Supply Chain Strategy rolled out.
- It is very simply stated, when a product is introduced in the market and advertised, the entire market in the country and all the sales counters need to have the product where the customer can buy and take delivery. Any glitch in the product not being available at the right time can result in the drop in customer interest and demand which can be disastrous. Transportation network design and management assume importance to support sales and marketing strategy.
Strategic Importance of Supply Chain Management
- Opportunity to reduce cost
- Transportation costs
- Inventory holding costs
- Provide value to customers by making the right merchandise is in the right place at the right time
- Fewer stock outs
- Greater assortment with less inventory
- Improved ROI