What Is Supply Chain Management (SCM)?

What is the importance of Supply Chain Management?

  • By ensuring that assembly firms receive timely shipments of raw materials, SCM lowers production costs. By doing this, businesses can prevent a scarcity of materials and production delays.
  • Since it ensures prompt product delivery from the producer to a retail outlet, a competent supply chain management plan helps reduce the need for an expensive warehouse. SCM lowers purchasing expenses by doing away with warehouses.
  • Businesses will eventually be able to anticipate stock shortages in advance thanks to a supply chain management plan. They can stop the loss of prospective sales by employing data like their reorder frequency, quantity of stocks ordered, and number of orders received.
  • The right number of products are delivered to clients at the appropriate locations and times thanks to supply chain management. These all contribute to better customer service.
 
Supply Chain Management