In its simplest form, a supply chain is the activities required by the organization to deliver goods or services to the consumer. Supply chain management is the optimization of a product's creation and flows from raw material sourcing to production, logistics, and delivery to the final customer.
A supply chain strategist focuses on the core activities within our organization required to convert raw materials or component parts through to finished products or services.
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Benefits of supply chain management
Supply chain management creates a number of benefits that translate to higher profits, better brand image, and greater competitive advantage. These include the following:
- better ability to predict and meet customer demand;
- better supply chain visibility, risk management, and predictive capabilities;
- fewer process inefficiencies and less product waste;
- improvements in quality;
- increased sustainability, both from a societal and an environmental standpoint;
- lower overhead;
Effective supply chain management is critical for the success of many companies that operate in international markets. Manufacturers, service providers, and suppliers must carefully manage their resources, operations, and transportation flows to meet the needs of customers.
SCM isn’t just about creating the most efficient process possible, it’s also crucial to mitigate risks and ensure everything runs smoothly. This is because so many elements make up the supply chain, from manufacturing sites and warehouses to transportation, inventory management, and order fulfillment.