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Supply Chain Management Is Primarily Concerned With The Efficient Integration of Suppliers

Supply chain management is concerned with efficiently integrating suppliers, factories, warehouses, and stores to minimize costs while satisfying customer needs. It aims to produce and distribute the right products in the right quantities, locations, and times. Supply chain management has become a priority for companies due to increased global competition forcing them to continuously improve efficiency. A supply chain includes all suppliers, manufacturers, warehouses, distribution centers, and stores linked in a specific order to create a product, with each link adding time and costs. Managing supply chains efficiently helps companies compete through quality products and punctual, low-cost distribution.

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148 views1 page

Supply Chain Management Is Primarily Concerned With The Efficient Integration of Suppliers

Supply chain management is concerned with efficiently integrating suppliers, factories, warehouses, and stores to minimize costs while satisfying customer needs. It aims to produce and distribute the right products in the right quantities, locations, and times. Supply chain management has become a priority for companies due to increased global competition forcing them to continuously improve efficiency. A supply chain includes all suppliers, manufacturers, warehouses, distribution centers, and stores linked in a specific order to create a product, with each link adding time and costs. Managing supply chains efficiently helps companies compete through quality products and punctual, low-cost distribution.

Uploaded by

lizhdezz
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Supply Chain Management is primarily concerned with the efficient integration of suppliers,

factories, warehouses and stores so that merchandise is produced and distributed in the right
quantities, to the right locations and at the right time, and so as to minimize total system cost
subject to satisfying customer service requirements.

Supply chain management has become a priority objective for companies, one of the reasons
being globalization, which has considerably increased the level of competition between
businesses, forcing them to continuously improve, allowing them to compete efficiently.

A supply chain is a collection of suppliers required to create one specific product for a company.
The chain is made up of nodes or “links,” which can include multiple manufacturers for parts, then
the completed product, then the warehouse where it is stored, then its distribution centers, and
finally, the store where a consumer can purchase it. The concept of the chain is important,
because each link is connected in a specific direction and order, and the next link cannot be
reached without going through the previous one. Each link adds time and costs, and can involve
labor, parts, and transportation. Every product a company carries may have its own supply chain,
though they may use certain suppliers for multiple products. You can see why this gets so
complicated, especially for international supply chains.

Whether or not the company is in global markets, it will have to compete internationally in any
case, because as in the case of Colombia, its local market is now open to importing products from
anywhere in the world. Two main points to be competitive are product quality and distribution
efficiency in terms of punctuality in delivery and minimization of costs.

Of course, companies must deal with several other things apart from these three, but almost
everything else is related to these points, which, being managed efficiently, will lead companies to
be more competitive and to have greater success and permanence in the market.

In conclusion, Supply chain management (SCM) is the centralized management of the flow of
goods and services and includes all processes that transform raw materials into final products.

By managing the supply chain, companies are able to cut excess costs and deliver products to the
consumer faster.

Good supply chain management keeps companies out of the headlines and away from expensive
recalls and lawsuits.

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