Supply Chain Management the Backbone of Organizations

Supply Chain Management the Backbone of Organizations

In businesses today SCM is considered to be their backbone because it holds the key to profit recognition which is the effective market coverage, availability of products at location, and etc. SCM impacts customer service by making sure the right product assortment and quantity are delivered in a timely fashion. Additionally, those products must be available in the location that customers expect (http://www.usanfranonline.com/). Malfunction in product being not available in a specific store at a certain time can result dissatisfaction from customer and drop their interest which can be tragic to the organization.

Another key to a good execution of marketing and sales strategy is through the use of a good transportation network design and management because a good transportation network design will assure you the availability of the product with a less transportation cost. Having a good plan of transportation network will give you the shortest possible routes without compensating the number of areas you can cover so; efficient travelling/delivering will cut off the gasoline expense, hasten the delivering time, and cash flow is increased because if delivery of the product can be rushed, profits will also be received quickly

The critical elements in an operation are the inventory control and visibility for they are cost drivers. Inventory means value and is an asset of the company. Every business has a standard for inventory turnaround that is optimum for the business. Inventory turnaround refers to the number of times the inventory is sold and replaced in a period of twelve months. The health of the inventory turn relates to the health of business (http://www.managementstudyguide.com/). This is why firms value supply chain managers because they decrease the use of large fixed assets such as plants, warehouses and transportation vehicles in the supply chain (http://www.usanfranonline.com/).

In summary, any...