Supply Chain Management

Introduction

What is the most important thing in the warfare? Let me put forward another question before you, what would be the most important thing for your business? For the very first question, I would rather put the logistics line up on the top. Similarly, in relation to business, the most of you will definitely agree on the customer, alternatively, clientele satisfaction. The determinant of this client satisfaction is the goods and services provided by you. I would tag these goods and services as the supplies. Identify the correlation between logistics in the warfare and provision of goods and services to earn the customer satisfaction points. The correlation in both cases is the management of the supplies.

No Business wants to run out of the stock of the goods and services provided, collectively supplies, and eventually bear the irreversible costs of customer dissatisfaction. Now in the simplest terms, the management of these supplies is tagged as Supply Chain Management. 

Supply Chain Management Objectives 

Following lines will attempt to take into account of the important objectives of the supply chain management.

• First, never run out of the Stock of goods and services.
• Secondly, ensure the supplies are pretty much cost effective.
• Tap the benefits of the customer dissatisfaction

Supply Chain management has two wings. First the supplier end to the Business, secondly, the Business to the Customer end. Both need to be equally focused in the Business strategy in terms of supply management if the Business really wants to achieve the long-term objective of sustainability. Business is the interface or alternatively focal point between the two distant ends that is the suppliers of the Business and the customers of the business. It is the responsibility of the Business to abridge these two ends and bring them closer in terms of distance, time.

Supply Chain Management Strategies

Different strategies have been evolved over the period of time to cut this necessary expense in relation to the inventory in particular. For instance, Economic Order Quantity is a technique that aims to cut down overall inventory expense by hitting the ordering and annual holding costs in particular that are integral part of the inventory costs. Total Quality Management is a concept that aims at the provision of the best quality goods and services to the end consumers to earn the customer satisfaction points and thereby reduces costs in terms of wastage costs.

Why in the contemporary Business world, there is pretty much focus on the supply chain management? Let me give you overview of the current world. I was going to office, was sitting beside my brother in the car. Suddenly, the discussion turned towards fuel economy. He opines that modern world auto engines manufacturers have focused production of the engines that are fuel economic. The word economic is not only referring to the thrust for the savings, over and above, it is also suggesting the resources scarcity and stress to used them wisely and to the best of the advantage.

You would have the changing trends in the current business world. The current business world has realized that in order to have the sustainable edge in the long-term, you need to cut down costs and thereby creating an opportunity to increase the profitability. Supply chain management is one of the key strategies to achieve the subject objective.