supply chain management (SCM) are the various activities required to plan, control and execute a product from production to distribution at the most orderly and cost-effective way possible to the final consumer. What is supply chain management It is very important to grasp the word logistics along with the question. Logistics is briefly defined as a means of providing products, services and services where they are needed. As can be understood from its definition logistics and supply chain management they are closely related and often confused. However, logistics is a component of supply chain management.
Logistics focuses on building a product or service in the most efficient way. It manages activities such as packaging, shipping, distribution, storage and delivery. Whereas supply chain management It includes broader activities such as strategically sourcing raw materials and ensuring the best prices on materials. An effective to the supply chain department Companies that have it have a competitive advantage by reducing natural risks.
Benefits of Supply Chain Management
High Efficiency Rate
Businesses supply chains, By combining integrated logistics and product innovation strategies, it will not only anticipate demand but also act accordingly. Businesses that follow supply chain processes can adapt more dynamically to volatile economies and emergency markets.
One of the most important advantages of supply chain management is the reduction of costs in different areas. In doing so, it improves your inventory system, increases the sensitivity of your system to real customer requirements, and improves your relationships with distributors and vendors.
Increase in Output Level
One of the main purposes of supply chain management and all other systems is to increase the output level and ensure high profitability. Supply chain processes Communication with carriers, vendors, suppliers and customers is improved. Thus, there is a noticeable increase in the output level.
Supply chain management
Thanks to communication in supply chain management, you can minimize delays in production and distribution processes. Thanks to the flow of information between departments, all delays from vendors, logistics errors in distribution channels and waiting in production lines can be reduced.
Increase in the Level of Cooperation
One of the most important features of successful companies is that they have an effective communication network. supply chain management You can get rid of the lack of communication and access the communication, estimates, reports, quotations and situations between different areas of your business in real time.