Efficient and effective Supply Chain Management (SCM) is integral to business su

Question

Efficient and effective Supply Chain Management (SCM) is integral to business success. SCM functions to integrate all of the business processes required to deliver products to the customer. Regardless of the size or type of business, SCM can increase a company’s ability to compete through aggregate planning and management of operational processes required to turn raw materials into a finished product. In what ways does business process integration contribute to the efficiency and effectiveness of supply chain management? What is Supplier Relationship Management (SRM)? How is it used to select and manage suppliers? What is the strategic benefit of SRM to the organization? To the supplier?

Explanation / Answer

Integration of all the operational processes makes all the work needed to be done to get uniformly distributed and hence it gets donw faster and more efficient. When all the departments of the organisation come together , it will be easy to work on the issues related to the product and come up with a solution. The process can be completed on time and the product can be delivered to the customers. Hence supply chain management is very crucial in the success of any organisation.

Supplier relationship management is the relations maintained with the third parties who supply goods to the organisation. Interacting and maintaining good relations with the suppliers helps us in developing our products . Meetings and summits helps us get closer to the suppliers and understand what is the capacity of each supplier and select the best one. When we need more than one supplier we can select from many options we have by discussing and analysing each of them. Suppliers also will get benefitted by this because they get to know the customers and what they want and hence provide better services.

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