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.
Pros of Supply Chain Management :
- It helps to achieve better inventory control.
- Supply chain management also helps to achive higher revenues and increases performance and profitability.
- It is used to understand and provide better information of customer needs, tastes etc.,
- Supply chain management can used to reduce the chances of failure.
- Supply chain management not only helps to get better control over suppliers but also helps to reduce labour and procurement costs.
- It improves customer care service and better communication with the customer is possible with supply chain management.
- It lowers transportation, packaging and warehousing cost and improves flexibiity, capacity and capability.
- It is faster and more accurate order processing and also useful for returns and recall management.
- It improves brand reputation in the market and also increases the value of shareholder.s
Cons of Supply Chain Management :
- Competitors can copy the supply chain management strategy.
- Sometimes different functions of supply chain mangement is difficult to manage.
- Supply chain management process can be expensive to implement.