Importance of Supply chain management


February 10, 2017

Supply chain management is related to a plan to reach a goal of coordinated management for supplying products that are bought and sold and products needed/demanded by the end customer. Supply chain management plays a very important role in company activities and an is extremely important element of operations which can be applied to meet customer needs or reaching a goal of company’s success.

Supply Chain Management (SCM) is a very important factor for operational working like producing and selling a product. Because of the important role of SCM within organizations, employers look for workers with an oversupply large amount  of SCM skills and knowledge. Supply chain management is very important to business intelligence solutions and business success for the following reasons :

 

  1.    Global role:

Basically, the world is one big supply chain. Supply chain management touches major issues including the fast growth of corporations, plan to reach company goals. For example, increase or decrease in gas prices can affect company’s success plans and goal achievement.

  1.    Role in society:

Supply chain management is necessary for the foundation and basic equipment needed for a business or society to operate within communities of people. SCM within a well-functioning community of people creates jobs, decreases pollution, decreases energy use and increases the standard of living.

  1.    Role in Business:

Clearly, SCM effects on business are significantly increasing day by day.

Two of the main SCM effects on businesses are:

  •         Boosts Customer Service:

SCM effects customer service by making sure the right product and amount is delivered in an appropriately-timed fashion, this is done by supply chain analytics solutions. Also, those products must be available at the location that customers expect and customers should also receive quality after-sale customer support.

  •         Improves Bottom Line

SCM affects the bottom line a lot. Firms give high value to supply chain managers because they decrease the use of plants, warehouses and transportation vehicles. Cash flow is increased because if delivery of the product can be quickly-done, money made/good things will also be received quickly.

Supply chain management helps in everything, from day-to-day product flows to unexpected natural disasters. With the supply chain analytics solutions, provided by BILYTICA, you’ll have the ability to properly identify a problem or its cause, work around disruptions and decide or figure out how to move products to suppliers and consumers more efficiently.

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