Thursday, 3 July 2014

Importance of Supply Chain Management in Global Economy

Authored by Fahad Amjad

Supply chains are backbones of the global economy. Their complication and critical role have businesses and governments progressively concerned about managing major disturbance. This calls for a better strategy around flexibility to build agile, transparent and expand systems. Supply Chain Management is an essential element to operational efficiency. SCM can be applied to customer satisfaction and company success. supply chain management is the most critical business discipline in the world today, the impact that SCM has on business is significant e.g. SCM impacts customer service by making sure the right product variety and quantity are delivered in a timely way, it has also tremendous impact on the bottom line as well, also cash flow is increased because if delivery of the product can be quicken, profits will also be received quickly.

The past several years have been marked by increasing economic inconstant, as reflected by not only the global economic recession, but also the instability of customer demand and rapid change in raw material, fuel, and commodity prices etc. Many Supply chain organizations are under pressure to develop more efficient, customer-services supply chains and find innovative ways to cut costs. Effective strategies and plan can help in this mollify pressure today, e.g.

Acquire demand-driven planning based on real-time insights, Build an adaptive supply chain with rapid planning and integrated plan, Associate your supply chain with business goals by connecting sales and operations plans, Plant feasibility into supply chain operations.