Why supplier chain management is required for an organization ?

Question

Accepted Answer

Supply chain management is required for an organization to ensure efficient flow of goods and services, reduce costs, mitigate risks, and enhance customer satisfaction.

Efficient flow of goods and services: Supply chain management helps in streamlining the movement of raw materials, components, and finished products, ensuring timely delivery to customers.
Cost reduction: Effective supply chain management can help in optimizing inventory levels, minimizing transportation costs, and negotiating favorable terms with suppliers, resulting in cost savings for the organization.
Risk mitigation: By having a well-managed supply chain, organizations can identify and address potential risks such as disruptions in supply, quality issues, or regulatory compliance, minimizing the impact on operations.
Enhanced customer satisfaction: A well-functioning supply chain ensures that products are available when and where customers need them, leading to improved customer satisfaction and loyalty.
Examples: Walmart's efficient supply chain management enables them to offer competitive prices and maintain a wide range of products in their stores. Apple's supply chain management ensures timely delivery of their products to global markets, meeting customer demand.

Accepted Answer

To ensure proper alignment with production plan and to ensure proper communication between suppliers management to enhance PDCA activites

Why supplier chain management is required for an organization ?

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