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Overview of Supply Chain Management Some Advantages and Disadvantages

Supply Chain management is associated with transformation and flow of services as well as goods from raw materials to customers and SCM includes all kinds of facilites , activities and functions during process. SCM is an integrative approach and all types of stages involved in fulfulling customer request either directly or indirectly. 

Advantages of SCM:

  1. SCM lowers inventories as well as costs.
  2. It improves flexibility of supply chain.
  3. Higher revenues can be generated with supply chain management.
  4. Profitability and performance of entire process increases.
  5. SCM focus on core compentency.
  6. Supply chain management improves the efficiency of the process.
  7. Shorter lead time and greater customer loyalty.
  8. Higher productivity and greater agility.
  9. Better inventory control by saving labor and procurement cost.
  10. Better control over suppliers can be achieved using supply chain management.

Disadvantages of SCM:

  1. Heavy investment of resources, time and money is required during implement and initial phase of supply chain.
  2. Choosing the correct suppliers and integrating supply chain, sometimes become more difficult.
  3. Sometimes loss of control.
  4. It may also impact in house workforce.
  5. Susceptibility to road conditions or weather conditions.
  6. It may unsuitable for heavy loads.
  7. It may also unsuitable for long distance.

Also find more points on advantags and Disadvantages of Supply Chain management to know more about it.

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