Define the terms supply chain and supply chain management, and discuss the benefits of supply chain management. Supply chain management coordinates and integrates all of the activities performed by supply chain members into a seamless process from the source to the point of consumption. The responsibilities of a supply chain manager include developing channel design strategies, managing the relationships of supply chain members, sourcing and procurement of raw materials, scheduling production, processing orders, managing inventory and storing product, and selecting transportation modes.
The supply chain manager is also responsible for managing customer service and the information that flows through the supply chain. The benefits of supply chain management include reduced costs in inventory management, transportation, warehousing, and packaging; improved service through techniques like time-based delivery and make-to-order; and enhanced revenues, which result from such supply chain-related achievements as higher product availability and more customized products.
1. Discuss the benefits of supply chain management. How does the implementation of supply chain management result in enhanced customer value?