SUPPLY CHAIN

MANAGEMENT
Presenting by:
Fathimath Riza
Supply Chain Management is an integral part of every business. The primary role of supply chain
management is to improve customer service standards and reduce the overall operational costs.

With the dawn of the digital era, supply chain management processes have undergone a drastic
change; processes have evolved from manual and labor-intensive to a more automated system-
based approach. This transformation has helped businesses grow exponentially. Just a decade
back, we could never imagine a one-day delivery format, but with online same-day delivery is
made possible. Automated techniques like Logistics software and Warehouse management systems
are optimizing businesses and helping them address the customer demands efficiently.
 IMPORTANCE OF SUPPLY
CHAIN MANAGEMENT
1. Improves Customer Service:
Today with commercialization, customer’s are spoilt for choices, they except the right product
at the right time. Any mistake or delay in delivery of orders can affect customer
relationship. Automated supply chain management systems help in streamlining the process
systematically, so that customer satisfaction and brand reputation are optimized.
2. Reduced operating costs:
Supply chain inefficiencies are potentially having an enormous impact on your bottom line. By
conducting thorough reviews as part of your management process, you can reduce your supply
chain costs and the time it takes for a finished product to arrive in your customer's hands.
Don't just look for inefficiencies within operations, either. Look at your supply chain model
‍
yourself. For example, if you're able to migrate towards a just-in-time model, you can
massively reduce warehousing and other storage costs.

3. Improved cash flow:

Efficient supply chains are efficient from end to end.

As such, you can accurately forecast what you're going to sell and how much product you'll
need to meet customer demand. So you end up with a seamless process where you're selling
products while ordering efficiently, improving your cash flow and making it easier to analyse
your financial metrics.
4. Improves Human Healthcare :
Humans depend on supply chains to deliver medicines and healthcare. During a medical
emergency, supply chain performance can be the difference between life and death.
For example, medical rescue helicopters can save lives by quickly transporting accident victims
to hospitals for emergency medical treatment. In addition, the medicines and equipment
necessary for treatment will be available at the hospital as a result of excellent supply chain
execution.

5. Foundation for Economic Growth :

Societies with a highly developed supply chain infrastructure (modern interstate highway
system, vast railroad network, numerous modern ports and airports) are able to exchange
many goods between businesses and consumers quickly and at low cost. As a result, the
economy grows. In fact, the one thing that most poor nations have in common is no or a very
poorly developed supply chain infrastructure.
6. Improves Standard of Living :
Societies with a highly developed supply chain infrastructure (modern interstate highway
system, vast railroad network, numerous modern ports and airports) are able to exchange
many goods between businesses and consumers quickly and at low cost. As a result, consumers
can afford to buy more products with their income thereby raising the standard of living in
the society. For instance, it is estimated that supply chain costs make up 20% of a product’s
cost in the U.S. but 40% of a product’s cost in China. If transport damage is added in, these
costs make up 60% of a product’s cost in China. The high Chinese supply chain cost is a major
impediment to improving the standard of living for Chinese citizens. Consequently, China has
embarked on a massive effort to develop its infrastructure.

7. Protects Delivery of Necessities :

Citizens of a country depend on supply chain managers to design and operate food,
medicine and water supply chains that protect products from tampering. Sophisticated
packaging techniques, state of the art surveillance cameras, global positioning systems
and RFID inventory tracking are some of the methods used to deter terrorists from
accessing these vital logistics systems.
CONCLUSION:

Logistics management is the core of any industry. It is indeed

the engine of your entire system; a well-managed supply chain
can help your business grow 10-20 times. Adapt the automated
techniques and become a leader in your industry.
THANK YOU