Posted on 10th Jan 2022
What is Supply Chain Management?
Supply chain management (SCM) is organizing and managing supply chain operations to achieve (or maintain) a competitive advantage. It typically includes production, shipment, distribution and possibly return systems. It can handle complexity from a general rather than a local perspective. Thus, it is described as a science of trade-offs, such as choices that must make, often related to costs versus service level or product customization.
The objectives of Supply Chain Management
The main objectives of SCM are to increase efficiency, reduce costs, and improve customer satisfaction. By streamlining the flow of goods and materials, SCM helps to eliminate waste, reduce lead times, and increase responsiveness to customer needs. By reducing costs and increasing efficiency, SCM can help companies become more competitive, increase profitability, and improve their bottom line. At the same time, by improving customer satisfaction, SCM can help to build stronger relationships with customers and increase customer loyalty. In short, SCM is vital for businesses looking to stay ahead in today’s fast-paced and competitive marketplace. By focusing on these three key objectives, companies can ensure that their supply chain is as efficient, effective, and customer-focused as possible.
The benefits of Supply Chain Management
It creates several benefits that lead to higher profits, better brand image and more significant competitive advantage, such as:
- Advanced ability to anticipate and needs customers’ needs;
- Advanced supply chain visibility, risk management and predictive capabilities;
- Fewer inefficient processes and less product waste;
- Improve product quality;
- Enhance sustainability;
- Lower costs;
- Improve cash flow and more efficient logistics.
With the help of Globe3 ERP supply chain management solutions, businesses can oversee the flow of products from suppliers through manufacturing to customers. Globe3 ERP can maintain a smooth production process by making sure all supplies are available and placed correctly and by precisely planning the use of the equipment and workforce resources. The procurement features of Globe3 ERP interact with suppliers and guarantee accuracy throughout the purchase process. In addition, production strategies to optimize through integrated demand planning, inventory management, and predictive analytics.