Supply Chain Management

Supply Chain Management
Name
Institutional Affiliation

Supply Chain Management
Supply chain management refers to all organizational processes and procedures dedicated to overseeing the movement of goods and services both within and outside an organization. Supply chain activities start when an organization sources for raw materials are used in production and end when the finished goods or services are delivered to the final consumer. By effectively managing the flow of goods and services, an organization stands to gain greatly from cost savings that would be realized from the elimination of wasteful processes internally and ensuring that the final product is efficiently made and delivered to the final consumer (Stentoft, 2017).
A supply chain network is usually composed of organizations, people, materials and modern communication technology that work together to facilitate the production of a specific product or the provision of a specific service. As a component of an organization’s operations, supply chain management results if effectively managed in sustainable competitive advantages as a result of the reduction in operating costs and the efficiency of internal processes and procedures (Mack, 2018). Efficient supply chain management also aids an organization to organize the flow of processes internally in a way that eliminates redundancy and the wastage of resources. Through a well-organized supply chain network, an organization can also be able to collaborate effectively with partners in the supply chain network.

This eventually reduces storage costs, as an organization only orders materials that are immediately needed in production. Partners in the supply chain also stay informed and know when to deliver or collect products. Organizations such as Wal-Mart and Dell have attained sustainable competitive advantages from the operation of an effective supply chain network that minimizes storage costs while at the same time availing products to the final consumer promptly.
References
BIBLIOGRAPHY Mack, S. (2018). Explain the Term “Supply Chain” and Its Importance to Cost Management. Retrieved from Chron: http://smallbusiness.chron.com/explain-term-supply-chain-its-importance-cost-management-69721.html
Stentoft, J. (2017). Supply chain innovation is perceived important for competitiveness. Retrieved from Sdu: https://www.sdu.dk/-/…/hdscm/hdscm_dilf_innovation_is_perceived_2017.pdf