Supply chain management is the process of procuring the raw materials from the suppliers which are later converted in to final products and are delivered to the customers through a network of distributors, wholesalers and the retailers. The supply chain of a company involves a complex array of business processes, decisions, and resource commitments. The supply chain for a company helps to improve the customer satisfaction, reduce the operating costs and also maximizes the wealth of the organization. Supply chain capabilities are combined with core business competencies, thus creating customer value and promoting profit. Supply chain management has brought in a positive change for both businesses, entrepreneurs and consumers.
The supply chain management for a company provides competitive advantage for a business in the following ways:
Opportunities:
Supply chain contributes about 55 to 85 percent of the total revenue costs of the organization and it is comprised of strategic sourcing and strategic logistics. These elements include the flow of information, business processes, and decisions to specify, design, plan, purchase, transport, warehouse, inventory, and deliver materials and services to internal and external customers. The efficiency and the effectiveness of these processes helps in achieving competitive advantage.
Contributions:
An efficient supply chain provides competitive, coordinated initiatives and enables to build distinctive competencies that competitors cannot easily duplicate. Best practice supply chain management integrates user expectations, the flow of purchased materials and services and commercial requirements. It helps the organization in improving customer satisfaction and rewards shareholders by enhancing profitability and providing better returns.
The supply chain management for a company provides competitive advantage for a business in the following ways:
Opportunities:
Supply chain contributes about 55 to 85 percent of the total revenue costs of the organization and it is comprised of strategic sourcing and strategic logistics. These elements include the flow of information, business processes, and decisions to specify, design, plan, purchase, transport, warehouse, inventory, and deliver materials and services to internal and external customers. The efficiency and the effectiveness of these processes helps in achieving competitive advantage.
Contributions:
An efficient supply chain provides competitive, coordinated initiatives and enables to build distinctive competencies that competitors cannot easily duplicate. Best practice supply chain management integrates user expectations, the flow of purchased materials and services and commercial requirements. It helps the organization in improving customer satisfaction and rewards shareholders by enhancing profitability and providing better returns.
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