Wondering Why?

Why is supply chain management important?

Why is supply chain management important?

A chain is literally defined as a series of links.  On the part of supply chain management, it also talks about the link – the connection between the businesses to their customers.  Supply chain management is therefore defined as a system of coordinated strategies from the company towards the clients and other who are involved with the business.  The goal of this is to create a long-term performance and sustainable development among the companies.

Traditionally, businesses were built just to gain profit without thinking about the customers.  As long as people buy the services or products, business will still go on.  But now, with the implementation of supply chain management, businesses become more customer-oriented.  There is a total view of the whole business working together as one with its clients or consumers.  Businesses now do not just aim for profit but for customer satisfaction.

Having to create a bond with the customers is very important for a business to grow.  This is the reason why supply chain management is important.  It further enhances customer relationship.  It does not limit to just what the business can create but also how it can improve the lives of the clients.

Supply chain management covers product developments, productions, sourcing of products, logistics, coordination, and information system.  To create a successful supply chain management, communication is very important for the information to flow to where it belongs.  If there is constant communication, coordination can be achieved thus creating a link.  If there is no information system between business chain partners, suppliers, customers, and the business environment, the chain will definitely break and business development could not be achieved.

Supply chain management should integrate business processes across its supply chain.  This integration will create business value and satisfaction among customers and stakeholders.  If a business can reach out to its clients, trust and collaboration can be achieved, leading to a better service and quality product.

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