why supply chain Management is important in starting a business

Rashmi Arora By Rashmi Arora, 16th Oct 2013 | Follow this author | RSS Feed
Posted in Wikinut>Business>Starting A Business

Supply chain management is very important factor which initiates and give profit and long term gains in less time. If proper planning is done the system becomes organised. In this way company achieves to be globally popular.

why supply chain management is important in starting a new business

As we are the manufactures our main aim is to supply the products to the customers. For this purpose we should have a proper supply chain management process. Supply chain management is a process which involves many interconnected businesses which take care of the product delivery and packaging of the product. The responsibility of the supply chain is to deliver the product safely o the end customer. Cost driven supply chain is meant when the supply chain management uses Just in time technology to use to make the process more effective. Global supply chain can be customer driven by customizing the process according to the needs and expectations of the customer. This can be by making the packaging customized according to the customer. The ten elements of the global supply chain strategy are as below:-
Sub-optimal sourcing results due to inadequate total cost data
High overhead costs to manage the global sourcing and logistics function
High inventories
Lost sales as companies struggle to match supply
Demand in the long supply chain
High costs for expedited freight
High levels of inbound lead-time variability
Reactive rather than proactive logistics management
Disconnect between inbound international movements and
Domestic transportation operations

Supply chain management strategy also focuses on absolute cost saving. Absolute cost saving is directly related to cost driven procedure of the supply chain management activity. The rate of growth of supply chain also affects the cost in a tremendous manner.

Plan: - Planning is the most important component of the supply chain management. With the help of proper planning the supply chain management can be more successful. In this stage the products and services are decided as well as the strategies are also planned. Planning included taking care of every small component of the supply chain along with the customer focus and customer satisfaction.
Source: - Source is the step where the supply chain management decides the sources of raw material suppliers. It is very important that the sources of the supply chain management are clearly specified so as to avoid miscommunication. Sourcing should include after sales services also which will be useful when there is an urgency of the raw materials.
Make: - the make procedure decides the making of the product with the help of supply chain management. This includes the production of the product as will as its packaging and the delivery of the product.
Deliver: - Deliver is the process where the product is delivered to the end customer. This maintains the networking of the warehousing of the supply chain management.
Return: - Return is a component where the mistakes of the product are taken care of and the flaws are verified. The supply chain management should be so strong that it should take care of the customer satisfaction.


Delivery Systems, Gain, Management, Manufacturing, Procedures, Profit, Steps, Supply Chain

Meet the author

author avatar Rashmi Arora
Hi friends for past 3 years i am working as a content writer and even i am an online tutor for past 6 years. I write contents related with maths, science, chemistry, biology and physics. I am msc phys

Share this page

moderator Steve Kinsman moderated this page.
If you have any complaints about this content, please let us know


author avatar Retired
30th Nov 2013 (#)

Hello Dear, how are you doing today? am ( Miss rose) i visited your lovely profile today and am interested in knowing more about you. please kindly write me back directly to my private email address is(roseapia_2013@yahoo.in )for you to know more about me. I believe knowing each other will help us in future communications. please write me directly to my email address here (roseapia_2013@yahoo.in ) .

Reply to this comment

Add a comment
Can't login?