Supply Chain Management
Supply Chain Management the management of flow of products and services, which begins from the origin of products and ends at the product’s consumption. It also comprises movement and storage of raw materials that are involved in work in progress, inventory and fully furnished goods.
supply chain management is to monitor and relate production,
distribution, and shipment of products and services. This can be done by companies with
a very good and tight hold over internal inventories, production, distribution, internal
productions and sales.
Supply chain management basically merges the supply and demand management. It
uses different strategies and approaches to view the entire chain and work efficiently at
each and every step involved in the chain. Every unit that participates in the process
must aim to minimize the costs and help the companies to improve their long term
performance, while also creating value for its stakeholders and customers. This process
can also minimize the rates by eradicating the unnecessary expenses, movements and
handling.
Advantages of Supply Chain Management
Supply chain partners work collaboratively at different levels to maximize resource productivity, construct standardized processes, remove duplicate efforts and minimize inventory levels
- It helps in differentiating one product with other product.
- Creates better delivery mechanisms for products and services in demand withminimum delay.
- Minimizes warehouse and transportation costs.
- Minimizes direct and indirect costs
- Assists in achieving shipping of right products to the right place at the right time.
- Enhances inventory management, supporting the successful execution of just-intimestock models.