Importance of Supply Chain in Present world
Supply chain management is an organised process that manages the flow of goods and services. This process begins right from the storage of raw materials and its flow is observed till it turns into the finished product. It includes activities like collection of the raw materials, manufacture and distribution of the end product. It is basically the art of managing everything related to the product distribution so that the accurate product reaches the right place within the time limit. The provision of products and services are looked after by interconnected networks, node businesses, and interlinked channels. The objectives of supply chain management are to create a net value of the product, leverage worldwide logistics, synchronising supply with demand and much more. Supply Chain Management Assignment Help contains more detailed information about Supply Chain Management. It is considered to be a very helpful process by the companies which keep looking for a production centre that would provide cheap labour and raw materials, in order to compete in the global market. This is because Supply Chain Management provides a strategic management plan that includes sourcing of raw materials from different places and finding different sites for the finished goods.
Operations Management is a management process similar to Supply Chain Management. It looks after the processes that are involved in the conversion of raw materials into goods and services, to make maximum profit out of it. The only difference is that supply chain management focuses on the external happenings whereas operations management looks after what happens inside the company. Operations Management is explained more specifically in Operations Management Assignment Help. Although these are two very similar management processes, supply chain management can be considered to be more helpful. It is essential for a proper operational efficiency of an organization to attain customer satisfaction and success. This also helps to manage competition among various business partners. Other benefits and importance of this process are:-
- Supply chain management provides an organization or business firm with various tools and techniques that allows and helps it to diagnose and eliminate the problems that cause disruptions around the business environment.
- It facilitates a faster movement of the goods to their respective locations through proper planning.
- It acts a medium for sharing of the information among business partners. This is important because miscommunication can lead to failure in many cases. It becomes easier to follow the plan and communicate through a proper channel.
- In case of global business and MNCs, the distribution centres, raw materials, and finished goods are handled by third parties. A systematic management of these inventories can be achieved with the help of supply chain management through effective control and visibility of inventory gains.
- Supply chain management is important for the reduction of operation costs. It decreases the purchase cost, production cost, and reduces the total supply chain cost.
- It improves the financial position of a firm through increased profit leverage and cash flow. It also decreases the use of fixed assets which would save the company from incurring any extra costs.