Importance of Supply Chain Management and Logistics

1. Introduction:

Logistics supply chain management is one of the most contemporary and challenging concepts in today's business world. Due to the increasing global demand for business; transportation, procurement, manufacturing, distribution activity have increased rapidly.

Now a day, major companies are focusing on SCM to reduce costs and continually strive to develop new innovative strategies to meet consumer demand to achieve a competitive advantage. Continue reading to get more information about supply chain logistics and moving services.

2 Definition of Supply Chain Management:

In short, supply chain management means the right products in the right place at the right time in the right size and in the right amount. For example, in the supermarket, if the consumer found on the product shelves, there is a tag for the product but there is no product on the shelf; what do you think?

Yes, it is because of the poor management of SCM. More precisely, SCM is the management of inbound and outbound logistics process for integrating procurement, suppliers, manufacturers, warehouses, distributors, transport, and store to meet consumer demands.

3 Why Supply Chain Management is Important?

As global competition increases customers have different options and the need to meet the demands. For example, if there is a demand for umbrellas in the rainy season and if you ask the supplier to provide 20,000 umbrellas in the summer and is expected to receive at the beginning of the rainy season; what would probably happen?

According to this scenario, let's say, for example, supplier response lately after two weeks, slowly began levying and then start the production and supply of goods at the end of the rainy season. As a result, in this case, the buyer will face huge losses.