Supply chain management – let the experts handle it
Supply chain management let the experts handle it
All the parties that are either directly or indirectly involved in fulfilling a customer's request are said to be a part of the supply chain. This means in addition to the manufacturing companies and suppliers, warehousing firms, retailers, transporters and even the end users or customers are a part of the supply chain. For smooth Supply chain management each integral part of the supply chain has few functions to perform which are distributed into stages.
Let us take a broader look at the need for Supply chain management or SCM in today's world.
The first and main reason for SCM to exist is the globalization. Companies are increasingly going global for suppliers as well as consumers. This has compelled for organizations to look beyond the local or national markets and devise ways to coordinate on a global scale for smooth flow of raw materials as well as finished goods.
More and more distribution channels have come up today to meet the needs of the market. There is more value and emphasis given not only on the quality of the products but also on the time taken to deliver. Competitors are increasing but so are customers and a defect- free product is what will get more publicity and therefore, generate profits firm than any paid advertising can.
This has what led to consumers demanding a consistency in the delivery of products and they want them faster, better and reliable. And to meet each of these needs. The manufacture has to not only product good quality products but also ensure that his raw materials meet the required standards. This makes him look for them globally and this is where Supply chain management comes to the rescue. Also, for meeting the needs of a global market too SCM is of utmost importance.