The website Investopedia defines supply chain or Supply Chain Management (SCM) as:
"The network created amongst different companies producing, handling and/or distributing a specific product. Specifically, the supply chain encompasses the steps it takes to get a good or service from the supplier to the customer."
Basically, the world is one large supply chain. SCM touches major issues, including the rapid growth of multinational corporations and strategic partnerships; sustainability of a remote community; and security of supply to individual and business consumers, each of these issues dramatically affects corporate strategy and the bottom line. Because of these trends, SCM is the most critical business discipline in the world today.
Clearly, the importance of SCM has on business is significant and exponential. Two of the main ways SCM is important to your organisation 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. Many public and private enterprises value Supply Chain expertise 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.
Effective SCM helps streamline everything from day-to-day product flows to unexpected natural disasters. Whether you are remote community Council, new entrepreneur or multinational company let Tagai Management Consultants partner with you and your team to develop an appropriate Supply Chain Management model that aligns with your corporate strategy.