Importance & Role of Supply Chain Management

5 Key Supply Chain Roles and Responsibilities

1. Increase Customer Service

The most important role of supply chain management includes the management of customer service. The customers should always get what they are looking for. Whether it is a product, a solution to their issues, or answers to their questions. The international supply chain management team ensures that the customer service platform is accessible 24/7 so the customers will feel connected to the organization they would like to do business with.

2. Reduce Production Cost

The first and most important role of supply chain management managers is to reduce the production cost of the items. It is done by:

• Introducing machines in the industry.
• Buy the raw materials directly from the factories or the wholesale markets.
• Reduce the number of rejected or failed items.
• Increasing the efficiency of the workforce.

3. Improve Quality of Products

It is a fact that the production cost of the products has to be reduced but at the same time, the quality of the items has to be enhanced. It has to be assured that the raw material and manufacturing of the items in high-class because only then customers will be attracted. They have to be durable, reliable, and long-lasting, so they can give the best result in all supply chain management industries.

4. Improve Financial Position

The company has to improve its financial status. It has to be assured that the customers will return to buy the products once again because they are satisfied with the previous items. The role of supply chain management is to work in a way that:

• The cash flow of the company will increase.
• The number of fixed assets will decrease.
• The profit leverage will increase.

It will make the customer believe that the company is progressing and showing positive results.

5. Development of Best Marketing Strategies

The role of supply chain management team has to develop the best marketing strategies for the company to ensure that its products will be present in the best possible way. Customers often decide whether they would buy a certain item or not by looking at the advertisements shared on different platforms.

Role of IT in Supply Chain Management

IT is used in a variety of ways to improve supply chain management operations. Depending on the needs of individual organizations, IT can take many forms, including data management software, cloud services, mobile devices, tracking systems, robotics, Artifical Intelligence (AI), and more. In addition to automating and technologizing the supply chain management process, some important roles of IT in supply chain management are listed below:

• Streamline operations, improve efficiency, as well as reduce costs.
• Build brand awareness and attract new customers by making their products available online.
• Help companies automate processes, connect disparate systems, and build brand awareness among consumers.
• Ensure security and compliance with regulations.
• Provide real-time visibility, tracking and traceability, manage supply chain risk, optimize logistics, and increase inventory accuracy.
• Increase sales, reduce inventory levels, and improve customer satisfaction.
• Helps protect sensitive data by using a secure cloud system that makes sure that all data is secure easily accessible among the supply chain partners.
• Make possible for organizations who are willing get benefit from blockchain technology in supply chains.

Importance of Supply Chain Management

The importance of supply chain management is growing globally. These 5 key reasons will explain to you why is supply chain management important:

1. Cost Efficiency

Effective supply chain management helps in reducing operational costs by optimizing inventory levels and streamlining distribution processes.

2. Customer Satisfaction

A well-managed supply chain ensures timely delivery of products, enhancing customer satisfaction and building brand loyalty.

3. Competitive Advantage

Companies with robust supply chain practices can respond quickly to market changes and customer demands, gaining a significant edge over competitors.

4. Risk Mitigation

Efficient supply chain management includes risk assessment and mitigation strategies, which help in handling disruptions smoothly and maintaining business continuity.

5. Sustainability

Modern supply chain management practices focus on sustainable solutions, reducing environmental impact, and supporting corporate social responsibility initiatives.

Importance of Supply Chain Planning and Control

Supply chain planning and control is an important part of any business’s operations, especially when it comes to managing large quantities of products. If a company fails to plan, it risks running out of products at inopportune moments, which can lead to significant losses. By contrast, if a business makes sure to have plenty of supplies on hand, it can avoid these kinds of issues.

With that said, supply chain planning and control aren’t easy—especially in large companies. A lot of work needs to be done before things can get off the ground, and there are many different factors that need to be taken into account. For this reason, most businesses use software to help them with this process. By doing so, they can make sure that everything is running smoothly.

Importance of Supply Chain Management in Retail & FMCG

In Retailing

1. It lowers the costs, as it helps a business deliver the provided products in the fastest manner possible, instead of keeping them in transit for too long;
2. A well-built supply chain will gain more clients for your business, pushing it one step further than your competition;
3. It can make the provided products more affordable, by lowering the overall costs, but without making your company lose the profit; this will be highly appreciated by your clients;
4. Customer services and experiences will be much improved, as customers enjoy prompt and secure delivery of their favorite products;
5. It will optimize the processes and make the supplies move faster along the chain, helping your business save time and money and improve its reputation in the eyes of end consumers.

In FMCG

1. It improves the transparency of processes along the supply chain so that FMCG (Fast Moving Consumer Goods) supplies can be tracked easier and delivered with increased efficiency;
2. The operations will become much more effective, which is extremely important for the success of an FMCG business;
3. It ensures a steady supply of goods where they are needed and when they are needed so that consumers won’t have to face shortages;
4. It minimizes losses by optimizing the processes, which is essential considering the volatile nature of some products in the FMCG market;
5. It improves coordination between demand and supply, allowing managers to see precisely what is needed, how much, and where it has to be delivered.

Implementation of Supply Chains Systems

The way we do business today changed a lot. A business can provide products not just on local markets, but also sell them internationally. With the help of today’s technology, it is very easy to globalize with the right supply chain analysis and acquire clients from all over the world. So, supply chains developed a lot in recent years.

• Without a proper management system, a supply chain, regardless of its type, won’t manage to unroll its processes successfully and satisfy the clients of your business. Just how important a management system for a supply chain is?
• A good management strategy will reduce the costs of your supply chain, improve customer services, and generate more sales that will strengthen the financial power of your business.