(10 points) Supply Chain Management (SCM) is the integration of key business pro
ID: 431243 • Letter: #
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(10 points) Supply Chain Management (SCM) is the integration of key business processes from initial raw material extraction to the final customer, including intermediate processing, transportation, and storage activities and final sale to the end customer. Today, the practice of SCM is becoming extremely important to achieve and maintain competitiveness. Many firms are just now beginning to realize the advantages of supply chain integration. Discuss the strategically important reasons for adopting Supply Chain Management.Explanation / Answer
SCM is indispensable for every organization, whether small or large. SCM is the most effective management of supply chain activities. It maximizes customer value and achieve a sustainable competitive advantage. SCM also deals with the movement and storing of materials that’s needed for a product creation, thereby contributing to inventory management. It also helps in keeping track of finished goods. Its also defined as the design, planning, execution, control, and monitoring of supply chain activities in alignment to creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance. The other areas that SCM encompasses are operations, logistics, procurement, and information technology. Without Strategic Supply Chain Management, the organization fails to function to provide and distribute various products and materials.
Consumers and producers communicate with each other, and a product goes through all the stages before reaching the end user. Supply chain management has significant role to play in issues such as the growth of multinational corporations, partnerships, and outsourcing and brand expansions.
Supply chain management has a huge impact on business. Good SCM is directly proportional to customer service. Consumers also want a high standard of customer support. If goods are not distributed on time, supply chain management branches of a company ensures timely delivery. Good supply chain managers improve the efficiency of a Business. Cash flow is directly increases because delivery of a product is in a timely manner.
Supply chain management streamlines product flow to unseen contingencies.Logistics of a large company are managed completely by supply chain management. With an effective SCM, organizations diagnose problems and disruptions correctly
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