Why Supply Chain Management is Essential for Businesses

Logistics Tech Outlook | Tuesday, July 13, 2021

With the use of technology, it is possible to simplify and speed up the supply chain management of the inventory of the products in the healthcare sector.

FREMONT, CA: The processes responsible for planning, procurement, warehousing, production, distribution, and sales promotion and fulfillment make up Supply Chain Management. It acts as a vital connection between the producer and the customer. A well-planned supply chain and effective customer service systems are critical for every retailer aiming to give its consumers a competitive advantage.

The Idea Behind Supply Chain Management

Supply chain management is based on the assumption that businesses would manufacture, distribute, and then sell a product to make a profit. The purpose of a well-run supply chain is to reduce expenses and increase operating profitability through sourcing items and outsourcing services.

Process Required for Managing the Supply Chain

From the time a product is produced to the time it is purchased by a consumer, and the supply chain management procedure is often divided into four steps. An adequate supply chain can manage and control "Value," "Volume," and "Cost."

Once companies finished managing every part of supply chain management and accomplished the supply chain's goals, they can streamline the supply chain management.

Sampling of Departments

A typical supply chain management process includes the following departments:


The internal departments in the supply chain that oversee procurement, order management, payments, receipts, stock-tracking, and supplier relationships are known as purchasing.


Warehousing aims to store and gather inventory in suitable areas until it is transported and delivered to consumers. Warehousing's primary purpose is to keep things safe from damage, theft, and contamination. The warehouse departments are in charge of quality control, storage locations, and inventory records.


Transferring commodities from the place of manufacture to the point of sale is known as distribution. There are several methods for moving products, each with its own set of benefits and drawbacks. Airfreight, road freight, rail freight, and sea freight shipping are all modes of transportation. The distribution process involves supplier management.


Marketing is the part of the business department in charge of advertising and recognizing a company's products and services. The primary purpose of marketing is to provide customers with a value-added product to boost sales and profit. The supply chain's marketing department is crucial.

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