Defining Supply Chain Management
Companies that deal with inventory will have to have some sort
of system in place to effectively manage the supply chain that
exists for any type of sales. A system of inventory needs to be
as smooth running as possible so that a company is able to
fulfill all its orders in a timely manner. If there is a
shortage of inventory, sales fulfillment will fall behind and
the company is in danger of losing both its reputation and
credibility. More and more companies are using some type of
supply chain management to keep track of what inventory they
have, what is allotted for current sales invoices, what product
has been ordered from the supplier, and what inventory is
already on route from the supplier. Once this supply chain is
running smoothly and efficiently there is little chance of lost
sales or dissatisfied customers due to a problem with supply and
demand.
Many companies have some employees that are trained in supply
chain management to ensure that someone with a working knowledge
of the supply and demand process is in charge. This type of
management ensures that someone is capable of making those
decisions in an informed and proactive manner. Many times the
person in charge of the supply and demand chain will also be
responsible for the rest of the employees working in the
inventory, shipping, and production area of the company. When
someone with the training that is provided by supply chain
management is in charge the inventory and production side of a
company runs with efficiency and order. The entire company is
counting on this efficiency to ensure profits, repeated sales,
and future growth.
Supply chain management is becoming more and more popular among
many companies as they realize the importance of controlling and
managing the product that enters and leaves the company. The
more attention that is paid to supply and demand the more
success a company will achieve.