Business-education
Business Education
<h2>Supply Chain Management and its importance </h2>
As per definition SCM is the management of a network of all business processes and activities involving procurement of raw materials, manufacturing and distribution management of Finished Goods. Supply chain management is the gem of business and it is the process which is used after launching your business. Companies sometimes get perplexed about the true nature of Supply chain management. Supply chain management does not play any role in building or launching product, it helps you grow your business faster. There are myriads of companies who ignore the impact of supply chain management and later on they regret it. It would be difficult to gauge is importance unless you don’t know its advantages
Reasons why managing your supply chain is important:
1) Reduced Supply chain costs: Managing supply chain management efficiently. It will reduced your supply chain costs and even gradually bring down risk
2) Resources to use in other departments: If you have reduced your supply chain costs then you could save ginormous amount of resources which can be spend elsewhere .
3) Improved operations management: A stable supply chain means that operations management should become more productive and constructive.
4) Improved overall business functions: A healthy supply chain not only makes operations management more effective, it has an impact on all of the business functions throughout your organization.
Well, This is just the meager and plays very crucial role in developing business. In this competitive market it is essential to main your manufacturing cost. In order to keep your manufacturing cost down, they select production centre where cost of raw material is cheap and minimal. They setup numerous factories and production unit and then pass it through various distribution network involving warehouses, exports to different countries or local markets, distributors, retailers and finally to the end customer.