A basic introduction to supply chain management

A basic introduction to supply chain management

Supply chain management is a system that is the constituent of all of the parties that are either directly or indirectly associated with the company and also those who are responsible for fulfilling any customer request that comes in. This means, the manufacturer, the raw material supplier, component suppliers, the warehousing units, the distributor, the wholesaler, the retailer and even the end customer are all part of the supply chain. Basically the main focus of any Supply chain management system is to fulfill the customer requests that come in. a typical supply chain has got various stages set according to the supply chain management systems.

Now we move on to answer the question as to what is the need for a good Supply chain management system:

Thanks to the modern technology and advancements in the thought processes of human beings, the world today has truly become a global village and companies keep scouring all around the world for getting the best raw materials at the most affordable price as also for expanding their customer base and get more and more people to buy their products. As such, without a good SCM system in place it will be very difficult to co-ordinate with such a large audience of supplier and buyers and logistics management can become a pain that is even capable of ruining the company. There has been a gradual change in the global orientation and the way consumers see companies today. By and large quality and timely delivery of goods and services is given more preference rather than quantity and a good Supply chain management assures the same. Companies have to continuously deliver goods that are consistently free from any defects or damage whatsoever. Only then will they be able to survive the growing competition today.

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