Friday, August 26, 2016

The Importance Of Supply Chain Management

By Eric Howard


A lot happens before raw materials are converted to finished goods. After raw materials have been harvested, from their natural settings, they need to be transported and stored before they are taken to industries from where they are changed into finished goods. Finished goods are moved from manufactures to final consumer after having gone through wholesalers and retailers. Supply Chain Management plays a great role in ensuring that flow of goods and services are managed well in order to reach consumers in a good way.

In case, there is poor movement of products from producers to manufactures, customers bear the burden. This indeed, shows there is need of managing movement so as to prevent innocent customers from being exploited. Logistics, information technology, operation management, procurement and industrial engineering are areas of study that are closely related to SCM. Behavior regulation of traders is accomplished with the help of SCM.

Reputable manufacturers handle and treat customers well. They produce goods that satisfy their customers fully. Most importantly they set prices that are affordable to customers, who consume their goods. This is the main reason why reputable manufacturers will always prosper and beat those who produce sub-standard goods. Proper SCM comes up with strategies that make manufacturer unique, with intention of attracting more customers to buy more products from them. Having attracted customers, the concerned manufactures should practice practices that will help them retain the already attracted customers for the good of the firm.

Manufacturing process creates goods and supplies them to distribution channels available. To enhance the efficiency, entire manufacturing process ought to be flexible. This is essential in ensuring that market changes are accommodated appropriately for the betterment. The changes in manufacturing process should adopt; shorter production cycles, efficiency in meeting demands of customers and improved responsiveness of needs of customers.

SCM promotes efficient use of marketing techniques. Marketing helps in creating awareness to people that there are goods capable of satisfying them. Needs of customers cannot be satisfied, if correct timing is not done. SCM ensures manufacturers comprehend importance of proper timing and techniques that they ought to adopt to achieve timely delivery of goods to customers. SCM educates the best ways to manage warehousing.

SCM is advantageous in society because many jobs are created. A good number of people acquire employment during distribution of products and services. Process contributes greatly in pollution reduction. When transportation of goods from producers to customers is managed well, energy consumption during this time is reduced. Less energy is used when goods are moved through modernized airports, ports, railways and improved roads.

SCM has a positive impact on customer service. Process ensures that right quantity of products is delivered to consumers within required time. Products are made available to customers in right location for the betterment. SCM promotes provision of after sale services of high quality to customers for better results.

SCM is very helpful in helping manufacturers reduce production cost. They guide on most appropriate methods to use during production in order to ensure amount consumed during production process is little. Following correct procedures does not only lower cost of production, but also cost of supplying goods to various customers is reduced.




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