• Supply Chain Management

    Supply Chain Management is the act of optimizing all activities throughout the supply chain links and processes so that the products and services are supplied in the right quantity, to the right location, at the right time, and at the optimal cost.

    Supply Chain consists of manufacturers, suppliers, transport management systems, warehouses, retailers and customers. Supply Chain Management (SCM) covers all activities that are needed while bringing a product into market. It also helps in reducing the total system cost that is to be spent by a company in order to satisfy customer requirements.

    Why Supply Chain Management?

    1. To Deliver goods in time to the customers
    2. To increase responsiveness to customer requests
    3. To achieve this customer service at the lowest possible cost
    4. To Reduce the Costs and Increase Profitability
    5. To Increase in service quality
    6. Improvement in Financial performance
    7. Increase competitiveness in the market
    8. To Increase Customer satisfaction and Customer retention

    An effective supply chain management can bring up to 5% cost decrease and 30% increase in sales. Effective SCM also helps companies in making quicker decisions in answering questions like what is the best price to be charged for a product; whether the price of the product has to be changed if there is excess inventory; what all product parts should be bought from which all suppliers; in which factory should the product be manufactured etc.

    Benefits of effective Supply Chain Management

    • Improved customer service – having the right products, available for delivery when requested, at a proper price
    • Proper system to gather feedbacks and reviews from the customer which lead to product improvement
    • Lower cost and efficient working capital management
    • Better inventory management leading to lower waste and lower inventory holding cost
    • Better manufacturing resource management through proper scheduling and planning
    • Optimal distribution of existing inventory across the supply chain
    • Enhanced customer value and quality which leads to more customer satisfaction

    Moreover proper supply chain management holds the key for future growth and future success

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