Importance Of Supply Chain Management

A supply chain is a network of organisations involved in the process of production, delivery and sales of a product. Supply chain includes suppliers, manufactures, retailers, transporters and storage facilities. Each organisation in the network provides a value-added activity to the product or services. It is the process of managing the flow of tangible goods and materials, funds and information within and between the organisations in the chain. As all the things in the network are linked together in to a system the functioning of each of these affects the functioning of the others. It is a set of approaches used to efficiently integrate manufactures, retailers, customers etc. so that the merchandise is produced and distributed at the right

Importance of Supply Chain Management
Supply chain management has always been important. If a busi- ness does not receive the raw materials, supplies, or components that it needs to produce its product, it cannot deliver it to the customer on time and cannot remain profitable. Because the supply chain is a system, possible fail points at any point in the system can have a cascading effect and negatively impact other parts of the system. In a simplified example, if Company B does not receive the needed raw materials to make its product from Company A in a timely manner, it will not be able to deliver the product to Company C within the time frame set forth in the contract. If Company C needs to deliver its product or service to Company D, it, too, will fail in its delivery unless it can find another source of the raw materials. Each of these companies runs the risk of having its contract cancelled for nondelivery and of not making a

As supply chain management is a network the firm will maintain good relationship with the customers. Each firm has there on specific plans to maintain the customer relationship. The supply chain function interfaces with customer relationship management in that their required capabilities are determined in light of the firm's identified customers.
• Customer service management-it is the process of continuing the customer relationship.it is the administration and coordination of key suppliers and customers. The role of supply chain management is to provide good services from the suppliers in relation with customer requirements and expectations.
• Demand management-it balances customer requirements with supply chain capabilities, matching supply and demand with minimal disruptions. Supply chain’s role is to forecasts for the demand management process accurately.
• Order fulfilment-it entails activities for defining customer requirements and designing an order fulfilment network. it helps firms to meet customer needs. Network planning is provided in designing and operating the information systems necessary for accurate and cost-effective order