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Supply Chain Benefits and Drawbacks

Some of the Benefits and Drawbacks of supply chain are as follows. So let us find out information on supply chain management to know more about it. Few more points on Advantages & Disadvantages of supply chain management (SCM)

Benefits of Supply Chain

  1. Supply chain reduces holding costs.
  2. Quick response can be observed in supply chain.
  3. Fewer parts and simpler ordering process in supply chain.
  4. Higher quality at reduced cost.
  5. Easy to match supply and demand.

Drawbacks of Supply Chain

  1. Sometimes loss of control during supply chain is observed.
  2. Sometimes less variety is noticed during supply chain.
  3. Sometimes traffic congestion increased costs.
  4. Supply chain may not be feasible always in different products supply. May need to absorb functions.
  5. Sometimes during supply chain coordination increases lead to increased costs.

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