Are all the activities to maximize customer value and achieve a sustainable competitive advantage. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. It is also, the broad range of activities required to plan, control and execute the distribution of a product in the most economical way possible.
Importance of supply chain management
It has significant impacts on both the enterprise and the customer. Supply chain management activities improve customer service. They have the ability to ensure customer satisfaction by making certain the necessary products are available at the correct location at the right time. By increasing the client´s satisfaction levels, a solid bridge of loyalty is created. Furthermore, following supply chain management best practices can minimize overuse of large fixed assets.
Benefits of supply chain management
Produces many benefits such as: new efficiencies, higher profits, lower costs and increased collaboration. Enables companies to better manage demand, carry the right amount of inventory, deal with disruptions and meet customer demand in the most effective way possible. These benefits are achieved through choosing effective strategies and appropriate software to manage the growing complexity of today’s supply chains.
In conclusion involves joint collaboration between outsourcing partners, suppliers, and customers. It comprises the transformation of goods from raw materials through to the delivery of the finished product; it also includes the management of key information flows.
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