Importance And Importance Of Supply Chain Management

Supply Chain Management is important for the survival as well as growth of an Industry. SCM helps in eradication of the communication barrier there is and allows the information to flow in an organized way. It also helps reduce the prolixity by coordinating, monitoring & controlling processes. As a Process, SCM covers the point of origin to point of consumption which means that SCM will take care of the production to sales to make sure the demands of the customer are met and the customer is satisfied. To have a successful SCM, coordinated efforts & cooperation between the organization’s business operations is required. When this criterion is met and the organization’s business operations are in sync then the demand of the customer can be met without overstocking which could save a lot of capital for the company. [1]
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The medium by which the customer is contacted are Email, telephone, call centers, electronic point of sale, automatic complaint handling software, after sales service etc. We use SCM to fulfill the demand at the right time with the right quality at the lowest possible cost. With the right Relationship strategy, we can gauge the demands and make sure we fulfill the above criteria. [2]

Managing Supply chain according to consumer needs:
The companies which are customer oriented have to form a leading edge SCM system. Several areas must be addressed to achieve a leading edge SCM system. First, we need to find out what customer service element is important to the customer so that those elements can be focused on. We also need to set performance level benchmarks so that we can gauge the customer’s satisfaction level. Another important factor is to decide the number of distribution centers a company should have and also what should be the appropriate location of the distribution centers so that the company can cover all of its customer base. [2]

Supply chain redesign