Know About the Advantages of Supply Chain Management

Supply chain management is the process of procuring the raw materials from the suppliers. These raw materials are used to produce the final products at the production site and are delivered to the customers through a network of distributors, wholesalers and the retailers. The supply chain management process can be divided into three distinct flows which includes the product flow, the information flow and the finances flow.

The following are the advantages a business can get by the implementation of the supply chain process:

• The supply chain management streamlines the supply chain of a business. It provides and assists the marketers to analyze the demand and supply of products or services produced by the company.
• The effective supply chain management increases the availability of the products in the market at any time and this increases the customer satisfaction which is a benefit for the company.
• Through the use of supply chain software the companies in the supply chain can share the information electronically.
• Business organizations can achieve collaboration with their partners and respond to their customers in real time with the help of supply chain management.
• The supply chain management gives competitive advantage for a business by earning the loyalty of customers, shareholders and employees.
• The supply chain management process enhance the productivity and thus increases the profits for the organization.
• The efficient supply chain management process helps the company in reducing the inventory carrying costs and it also increases the responsiveness to orders of the customers.
• Effectively managing the supply chain saves operational and transportation costs.

Supply chain management has brought in a positive change for both business entrepreneurs and consumers.