Objectives Of Supply Chain Management

What is Supply Chain Management

Supply chain management (SCM) is a critical aspect of modern business operations. It is arguable that the success of an organisation in the current global business environment relies on the manner in which the organisation leverages its supply chain to obtain competitive advantages. This essay begins by defining supply chain management to facilitate an understanding of its importance to businesses. The next part of the essay discusses the main purpose of supply chain management. The paper concludes by describing how firms that take part in international trade use different distribution channels and supply chains.

According to Christopher (2016), supply chain management is a relatively new concept. In the past

However, SCM also allows a firm to achieve other related objectives. First, it allows an organisation to reduce costs per unit due to the increased level of efficiency. Supply chain management also reduces the length of the delivery cycle (Havaldar, 2008). Other objectives of supply chain management focus on waste reduction and creating delivery systems that are superior to those of competitors (Havaldar, 2008). From the definition, it is evident that supply chain management’s scope is extensive. It begins with the movement of different raw materials into an organisation, followed by the movement of these materials within the organisation as they are converted into final products. Additionally, supply chain management concerns itself with the delivery of finished goods to the end consumers. The wide scope of supply chain management can distract an organisation from its core mandate. As such, firms opt to concentrate on their core competencies and rely on partners to oversee the majority of supply chain functions. This reliance on partners is facilitated by modern technology which has connected suppliers and customers in new and effective ways (Longenecker et al.,