Supply Chain Management
A business’ supply chain refers to the system that is used to get its products to the consumers of that product (Harrison & Lee, 2004). It is important to manage the supply chain, mainly because of the positioning of the department and its importance in a business. First, it provides a competitive advantage for the business over its competitor, without having to lower the prices. By developing an efficient supply chain, the business has a chance to inspect the products for the last time before they are dispatched to the market, as well as delivering orders faster to the clients. Also, it helps eliminate some redundant steps, e.g. it cuts on the cost of salaries by ensuring that workers do not waste time on some unnecessary procedures. Businesswise, an efficient supply chain will also increase a business’ negotiating power with other stakeholders, such as the retailers and suppliers, who also will benefit in terms of doing business faster.
Harrison, T., & Lee, H. (2004). The practice of supply chain management: Where theory and
application converge. New York, NY: Springer.