These days students all over the world engage to get excellence in terms of extra knowledge to compete professionally with others. However, due to the globalisation, the role of supply chain management is raising rapidly that attract scholars towards this field. Moreover, it works in a cross-function within and outside the organisation to support and arrange the links between its suppliers, customers, and business partners in order to improve the company`s business process to make it more proficient.
SCM is concerned with the total management i.e. processing of all the activities in any of the company to achieve a common goal; "to provide best level of customer services with lower cost" we can also call it as the goal of SCM which also includes "to get a company`s product from concept to market".
Supply Chain as a Competitive Advantage:
SCM has been known as the source of competitive benefit by all the multinational companies. It is a philosophy that is mainly used and realised by few companies in the past and now numerous companies increasingly focusing on the growth potential which can be examined by the only modern supply chain management philosophy, and this software is not just for big organisations but also have significant advantages for small or medium-sized business which helps to control cost and improve performance.
Purpose of Supply Chain Management:
From the business perspective following could be the objectives of Supply Chain Management:
- Increasing customer services
- Access sale revenue
- Accrual On-time delivery
- Boosting in depth of distribution
- Contraction of inventory cost
- Decreasing lead time
Supply Chain Management trend is to focus on the wants of the customer this elaborates the importance of the information which relates data entry, preference, pattern, history of transactions, contacts and so on. Moreover, demographic information about customer’s likes and dislikes, because of their expectation level increases and fluctuate readily which directly proportionate the level of the service expectancy.
Functional processes of Supply Chain Management:
The functional processes performed by Supply Chain Management enhance the importance of management and give the best sources for the procurement with the strategy. Companies have experienced such processes which came up with the following results;
- It can forecast and predict the happenings in the organisation by the estimation and can even plan for demand and Supply.
- It creates the budget with maximum figures so if the company gets lower profile than that is expected.
- Supply Chain Management predicts about how much labour would be required for a project to complete.
- It automatically works with the Distributors Network in case the goods are finished so can acquire from the substitute it gives the complete information about the products.