How Important Supply Chain Management is in Modern Businesses

As defined by Tom McGuffog, Supply Chain Management is “Maximizing added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market.”

Well, it’s due to globalization, in the present time supply chain management has become a tool for thousands of multinational companies to compete effectively. For the manufacturing industry when it comes to deliver products at a competitive cost and at a higher quality than their competitors. Here, in this article, according to Stephen Soos’s point of view, we will be discussed about some reason why supply chain management has become important to today’s manufacturing industry:-

Stephen Soos thinks that in the recent days supply chain management has allowed business to not just have productivity advantage alone but also on value advantage. You can add more innovation to your product and the process by maximizing added value to them. One thing to mention here, through mass manufacturing you can get productivity advantage but with highly effective supply chain management you can achieve mass customization.

That’s not all; with mass customization your customers are given the value advantage through customized adaptation and flexible manufacturing. Also product life cycles can be improved through proper use of Supply Chain Management. Value advantage also changes the norm of traditional offerings that is ‘one-size-fits-all.’ Through Supply Chain Management, the more accepted offerings by the industry to the consumers would be a variety of products catered to different market segments and customers preferences.

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