New to the World of Supply Chain ! Article #2
New World of Supply Chain ! Article #2
Hello and welcome back my dear readers. Before we start this article I would like to dedicate a special thanks to those who commented and gave me their feedback, whether in a comment or sent me messages. I hope you enjoyed the last article, now let’s get started with this one. In this article, I will answer a question raised in the last article, which was “Why is Supply Chain so important?”
Basically, the world is one big supply chain. Supply chain management touches major issues, including the rapid growth of multinational corporations and strategic partnerships; global expansion and sourcing; fluctuating gas prices and environmental concerns, each of these issues dramatically affects corporate strategy and bottom line. Because of these emerging trends, supply chain management is the most critical business discipline in the world today (I dare you to say this in one breath).
But what does this really mean?
Basically, it turns out that Supply Chain is the entire process from when a product is just pieces of raw materials till it reaches the end customer. It is this one big cycle that joins all departments together. And so it is very crucial to any business, and one must always be updated with its latest trends.
Two of the main ways Supply Chain Management (SCM) affects business:
- Boosts Customer Service
Supply Chain Management impacts customer service by making sure the right product assortment and quantity are delivered in a timely fashion. Additionally, those products must be available in the location that customers expect. Customers should also receive quality after-sale customer support.
- Improves Bottom Line
Supply Chain Management has a tremendous impact on the bottom line. Firms value supply chain managers because they decrease the use of large fixed assets such as plants, warehouses and transportation vehicles in the supply chain. Also, cash flow is increased because if delivery of the product can be advanced, profits will also be received quickly.
Well, that’s it for today. See you next time. I will be posting on a weekly basis, so don’t miss it, and once again don’t forget to leave your replies. Waiting to hear from you.
A Daring Marketer