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The Important of Supply Chain Management

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The important of supply chain management
In the traditional view, the supply chain includes manufacturers, wholesaler’s retailers. For example, the manufacturer could sell directly to an individual for household usage, sell to a retailer for sale to the individual or sell to wholesalers for sale to the retailer, who then sells to the individual. Thus, supply chains consist of all the institutions and all the marketing activities such as storage, financing, purchasing and transportation that are spread over time and geographical space throughout the marketing process.
According to Tom McGuffog Supply Chain Management (SCM) is a maximising added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market. Due to globalization and ICT, supply chain management has become a tool for companies to compete effectively either at a local level or at a global scale. Supply chain management has become a necessity especially for manufacturing industry when it comes to deliver products at a competitive cost and at a higher quality than their competitors.
The supply chain management process flows consists of 3 main flows that are the product flow, the information flow and the finance flow. The product flow usually involves movement of products from a supplier to a customer, and also the back end process such as any customer returns or service needs. The information flow involves the flow of information on orders and updating the status of delivery. The financial flow consists of credit terms, payment schedules, and consignment and title ownership arrangements.
Supply chain management is essential to company success and customer satisfaction. It plays a critical role in society. Supply chain management knowledge and capabilities can be used to support medical missions, conduct disaster relief operations, and…...

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