Benefits of Supply Chain managementIncreased globalization and competition has made supply chain management a very significant andcrucial concern for any company. Supply chain management refers to the management of a distributionchannel across organizations. All the members of the channel, from suppliers to end users, coordinatetheir business activities and supply chain processes to minimize their total costs and maximize theireffectiveness in the market. It fundamentally looks at reducing inventory, increasing the speed oftransactions with real-time exchange and increasing by efficiently fulfilling customer demands. Thesupply chain management process provides integrated end-to-end visibility and management from theupstream supplier through to the final product delivery. It does not only involve the movement of aphysical product through the chain, but also includes any data that goes along with the product like anorder status information, payment schedules, and the actual entities that handle the product from stageto stage of the supply chain.Effective supply chain management must take into account coordinating all the different pieces of thischain as quickly as possible without losing any of the quality or customer satisfaction, while still keepingcosts down.The benefits of supply chain management include With the greater than before visibility into the supply chain and adaptive supply chain network, it is possible to get more responsive and capitalize on new opportunities. Supply Chain Management allows you to familiarize yourself and meet customer demands by providing a common information framework that maintains supports communication and collaboration. It is possible to track and examine compliance in areas as environment, health and safety. With proper visibility and real time business intelligence it is possible to have shorter cash-to- cash cycle times. There can be a decrease in overall costs with reduced inventory levels and increased inventory turns across. The right supply chain management solutions can help in lowering operational expenses with timely planning for procurement, manufacturing and transportation. Improved order, product and execution tracking can lead to enhancement in performance and quality and lower costs. It also facilitates the improvement margins all through better coordination with business partners. Strong association with trading partners keep the supply chain aligned with existing business approaches and priorities, and helps in augmenting the organizations total performance and achievement of goals.
Supply Chain Management has allowed business nowadays to not just have productivity advantage alonebut also have a value advantage.Also read on - Spend analysis, Electronic payment process