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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.

Pros of Supply Chain Management :

  1. It helps to achieve better inventory control.
  2. Supply chain management also helps to achive higher revenues and increases performance and profitability.
  3. It is used to understand and provide better information of customer needs, tastes etc.,
  4. Supply chain management can used to reduce the chances of failure.
  5. Supply chain management not only helps to get better control over suppliers but also helps to reduce labour and procurement costs.
  6. It improves customer care service and better communication with the customer is possible with supply chain management.
  7. It lowers transportation, packaging and warehousing cost and improves flexibiity, capacity and capability.
  8. It is faster and more accurate order processing and also useful for returns and recall management.
  9. It improves brand reputation in the market and also increases the value of shareholder.s

Cons of Supply Chain Management :

  1. Competitors can copy the supply chain management strategy.
  2. Sometimes different functions of supply chain mangement is difficult to manage.
  3. Supply chain management process can be expensive to implement.

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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.

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 :

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.