Role Of Supply Chain Management in an Organization

Supply Chain Management is a part of a business or an initiative of an organization that

ensures goods, services or product gets to customers in the easiest way possible.
Supply Chain Management also known as SCM importantly notes how their customers’
need commensurate with what they have or can offer.

The world has gone from just having physical stores or businesses to online
merchandise. Planning how to effectively reach your wide range of customers has a lot
to do with Supply Chain Management. Let’s talk about the importance.

Importance of Supply Chain Management

1. Reduced Operating Cost
Retailers and manufacturers rely directly on Supply Chain Management to have a
reduced operating cost. Retailers bank on a company’s SCM to sell their products and
services. The business world has become highly competitive and retailers can’t afford to
lose a customer. Right SCM boosts sales.

The same is applicable for manufacturers too. Dell computers were known to take
orders from customers or retailers worldwide, build their specifications and send directly
to them. This, an initiative of Supply Chain Management saved more million dollars. Dell
didn’t have computers lying without use and retailers had no computers lying in
warehouses without being sold.

With a SCM, both sides of market do more.

2. Effective Customer Service

A business or organization’s sole purpose is to meet customers’ needs. Supply Chain
Management manages customer service to ensure demands are met. When a call is
placed to your organization about a product, customer service reaches out to SCM to
ask or investigate what customers want. Customer service 24/7 accessibility is partly
dependent on Supply Chain Management. SCM ensures right delivery, on time delivery
and right delivery

3. Quality Products
Supply Chain Management on the request of customers and high competitive market
increase the quality of products. They believe services and products must be durable
and reliable.
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