Importance of Supply Chain Management

            Supply chain management is important due to its value in its efficiency in operations.  SCM is put in the satisfaction of the customers and the success of a given company and the plans of the society.  These include the missions on clinics, reprieve of disasters and other forms of emergency. Thus supply chain management has a good value in the improvement of life quality.  Due to the important role that the SCM has on the companies, employers look for employees with the SCM skills and acquaintance (Christopher, 2016).  As the universe is one big supply chain, the SCM plays a major role on issues such as the quick growth of the international companies and the planned stakeholders. Due to the upcoming modes in the global corporation such as the fluctuating prices on gas and the environmental basis which affects the business policies, the SCM is the most serious business sector internationally. Many companies value SCM as it depreciates the usage of huge fixed assets such as depositories and plants in the supply chain (Christopher, 2016). 

            Supply chain management impacts the financial position of an organization as many companies focuses on it as a way of improving the customer gratification and lessen the operational disorganizations.  It is important to the competitive capacity of the company mainly in the globalization and the IT industry development thus companies are not competing in the as entities but as part of the supply chain in the globally (Sabri, 2015).  In the minor companies, the supply chain management will help in the reduction of costs of the goods sold and the operational expenses.  Companies that use the SCM have a momentous cost and cycle time reductions. Thus the companies that use the SCM gain more savings that are equal to 3-7% of their incomes likened to their average execution upper class business partners (Sabri, 2015).

 

References

Christopher, M. (2016). Logistics & supply chain management. Pearson UK, 2016        

Sabri, E. H. (2015). Optimization of supply chain management in contemporary organizations. IGI Global, 2015