Why Do I Need A Supply Chain Management Company?
To self admittedly steal fabulous verbiage from the University of San Francisco’s Supply Chain Program, Supply Chain Management (SCM) is an essential element to operational efficiency. SCM can be applied to customer satisfaction and company success, as well as within societal settings, including medical missions; disaster relief operations and other kinds of emergencies; cultural evolution; and it can help improve quality of life.
The world is one big supply chain. Supply chain management touches major issues, including the rapid growth of multinational corporations and strategic partnerships; global expansion and sourcing; fluctuating gas prices and environmental concerns, each of these issues dramatically affects corporate strategy and bottom line. Because of these emerging trends, supply chain management is the most critical business discipline in the world today.
Some of the benefits include:
- Boosts Customer Service: SCM impacts customer service by making sure the right product assortment and quantity are delivered in a timely fashion. Additionally, those products must be available in the location that customers expect. Customers should also receive quality after-sale customer support.
- Improves Bottom Line: SCM has a tremendous impact on the bottom line. Firms value supply chain managers because they decrease the use of large fixed assets such as plants, warehouses and transportation vehicles in the supply chain. Also, cash flow is increased because if delivery of the product can be expedited, profits will also be received quickly.
Supply chain management helps streamline everything from day-to-day product flows to unexpected natural disasters.