Benefits of Supply Chain Management System

Supply chain management brings innovation to the Logistics industry. It is the management process for the collection of interlinked or interconnected channels, networks and services, and products packages delivered to the end-user in a supply chain. The main aim of this kind of management is to fulfill the demands and requirements of the customer and involve some stages as well like the flow of raw materials, parts to be assembled, finished goods or products supplied to the customer. Apart from these, storage of raw materials, planning and scheduling of production, inventory, warehousing, customer service, return management, the flow of funds and information, and other logistics-related activities are also managed under this system.

Providing high-quality customer service is the main priority for every organization and to compete in the global market and networked economy, organization increasingly relies on an effective supply chain. For successful SCM (Supply Chain), integrating the activities of manufacturers, inventory, warehouse, suppliers, transporter, customers, and retailers need to be in synchronization. This synchronization plays a great role in products and service delivery at an accurate time to the end-user. It mainly aims to customer satisfaction with the reduced cost and increased productivity.

With the advancement in the e-business world, it becomes quite difficult and complicated to manage the supply chain as they need to handle a large number of suppliers and end-users at the same time. So primarily supply chain members focus to implement manage strategy in such a way that it returns in increased productivity in terms of cost, availability, quality, and flexibility. There are various business challenges that a Logistics service provider faces every day in the business world like keeping pace with advancement in technology, globalization effect, and the increased pressure of shareholder values. In order to handle these activities, SCM offers a systematic approach and results in low inventory cost and high productivity.

Traditionally SCM is considered as a Logistics management, but in actuality, it is just an important part or function in the development of the effective supply chain. 

The main supply chain processes are:

Return Management

Customer service management

Timely order fulfillment

The flow of manufacturing management

Supplier service

Performance measurement

Inventory control

Warehousing management

Major benefits provided by the effective Supply Chain are:

Improve customer relationship and service

Reduce indirect and direct labor cost

Improve productivity and business operations

Enhanced supplier collaboration

Improve inventory management

Enhance delivery service and minimized delays

Increase revenue or ROI

Enhance decision making speed and strategy

Reduce warehouse and transportation costs

Improve product and service quality

Provide security for investors

Supply Change Management is a highly advantageous management system if implemented effectively but the future scenario is complicated for the organizations as they need to handle more issues, so there is much more to learn and gain.