The Importance of Supply Chain Management (SCM) is an integral of any business selling goods. SCM is the management of the flow of goods and services. SCM involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of origin to point of consumption. Link.
More succinctly, SCM is the art of providing the right product, at the right time, at the right place at the right cost. Link.
The Importance of supply chain management is necessary for distributors achieving operational efficiency. Also, SCM involves the alignment of all end-to-end business processes throughout the supply chain. As a result of effective SCM, distributors gain a competitive advantage.
The Importance of Supply Chain Management and Why it Matters?
The importance of supply chain management understanding is integral to a distributor’s success. SCM is necessary for success and customer satisfaction. As a result of SCM , customer service improves. Because SCM reduces operating bottlenecks, finances improve.
Boosts Customer Service
SCM ensures customers are satisfied. Because SCM ensures the correct products and quantity are delivered on time customers are happy. Furthermore, SCM allows products to be serviced quickly if replacements are needed.
Reduces Operating Costs
SCM decreases overall costs since retailers have to quickly move shelf products to avoid expensive storage. Above all, wholesalers, manufacturers and retailers depend on an efficient supply chain network that meets customer service goals.
Improves Financial Position
SCM increases profits by reducing the costs in the supply chain. First of all, SCM decrease the use of assets such as plants, warehouses, inventory and delivery trucks. Also, SCM increases cash flow by providing customers with faster receipt of the right products. This leads to faster payment.
Ai2’s Solutions insure the inventory health of your business
Ai2 understands the importance of supply chain management for distributors. Above all, our solutions help distributors overcome problems in the supply chain. Ai2. Inventory control and inventory visibility are two very critical elements for distributors. Furthermore, these are the cost drivers that directly impact the bottom line. Every distributor has a standard for inventory turnaround that is optimum for its business. Above all, the ordering of stock-out products create huge costs and customer dissatisfaction. In conclusion, Ai2’s solutions help insure the inventory health and turnaround of your business