Supply chain management is the control of resources, information, finances, and all logistics as they as they are transferred in a process from the supplier to manufacturer and then wholesaler to stores for consumption. Supply chain management incorporates coordination and integration of these flows both internally and externally among companies. It boosts the aspect of consumers’ satisfaction by ensuring that deliveries are done at the appropriate time and places (Christopher, 2016). This paper is going to examine the role of supply chain management in a company’s ability to compete effectively in the market.
Supply chain management comprises oversight of raw materials as they move into a company. This process will demand that specific components of the internal processing of materials be monitored before having the finished goods. After this, there will be the transfer of these finished goods from the company to the expected consumers. Therefore, supply chain management becomes fundamental in increasing the company’s potential to compete effectively in the market (Christopher, 2016). The minute supply chain management is subcontracted, the number of entities involved in fulfilling consumer demand while lessening managerial control of day to day logistics of operations is heightened. The role of supply chain management is to enhance trust and group effort among supply chain partners. As a result, this will improve inventory visibility as well as the speed of the movement of inventory.
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In conclusion, supply chain management is critical as far as the coordination and integration of materials flow in a company internally and externally is concerned. It is a central tool to aid in achieving corporate strategic goals and objectives of an organization. A company becomes better positioned to compete effectively in the market because of reduced working capital, acceleration of cash to cash cycles, heightened inventory turns as well as removing assets from the balance sheet.
Reference
Christopher, M. (2016). Logistics & supply chain management . Pearson UK.
