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Supply Chain Management Definition, Advantages and Disadvantages

Definition of Supply Chain Management

Supply Chain management can be considered as an effective tool for improving business process. It starts with the source of supply and competes at the point of consumption. Supply chain management is a flow of information and materials from suppliers which involves number of value added process and different distribution channels to the customers. 

Supply chain management involves :

  • Customer
  • Producer
  • Suppliers

Supply Chain management includes inventory managment, supplier managment, Goods receipt and warehouse managment, customer requirement processing and purchase order processing.

Supply Chain Management Advantages :

  1. It improves relationship between suppliers as well as buyers.
  2. SCM reduces cost throughout the supply chain process.
  3. SCM also gives competitive advantages by earning loyalty of employee, customers and shareholders.
  4. It also enables the streamlining of the supply chain.
  5. Supply chain management mantains balance between service and cost.
  6. Customer services improces by enabling supply chain management.
  7. It becomes easy to estimate or forecast the demand and supply of services as well as goods using supply chain management.
  8. SCM helps in sharing information of sales-related different between parties
  9. Using SCM marketers can respond to their customers easily and effectively.

Supply Chain Management Disadvantages :

  1. One of the biggest disadvantages of Supply chain management is, it requres heavy investment of money, time and varous resources to imprement SCM
  2. It becomes difficult to decide whether to outsource or not.
  3. Choosing correct suppliers by integrating supply chain is very difficult.

 

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Advantages And Disadvantages of Supply Chain Management

Some of the Advantages And Disadvantages of Supply Chain Management are listed below. So let us check it out some information on advantages and disadvantages to know more about supply chain management. It is the management of flow of services as well as goods and includes all intermediate processes that transform raw materials to final products.Supply chain mangement  consist of broad range of activities which is required to control, plan and execute a product's flow.

What are the Pros and Cons of Supply Chain Management ?

Some of the Pros and Cons of Supply Chain Management are listed below. So let us find out brief information on pros and cons to learn more about supply chain management. It is the management of flow of services and goods and includes all types of process that transforms raw materials into final products. So  check out advantages and disadvantages of Supply Chain Management discussed below.

Examples of Critical Supply Chain and Logistics Processes for Retailers

Some of the examples of critical supply chain and logistics processes for retailers are as follows. So let us find out some information on SCM to know more about it. 

  1. Global trade management
  2. Distributed order management
  3. Reverse Logistics (Returns)
  4. Cross border e-commerce
  5. Same day, last-mile delivery
  6. Multi-echelon inventory optimization

Find out Disadvantages and advantages of Supply Chain Management to know more about it.

Full Form of SAP

SAP : Full Form is given below So Let us find out the full form of term SAP and other useful details to know more about SAP.

1. SAP stands For "Systems, Applications and Products in Data Processing".

SAP is related to ERP Where ERP stands for "Enterprise Resource Planning".