Effective supply chain management can be illustrated as the efficient use of technique and approaches that encompasses manufacturers, suppliers, and distribution channels in a way that delivers product or services at the right time, in the right quantities, and at the needed location to minimize costs and maximize profit and customer satisfaction. Supply chain management is an expanded management focus that considers the collective impact of all the firms elaborative involvement in the production of goods and services, from suppliers to manufacturer to wholesalers to retailers to ultimately consumers. This method to managing logistics and production set up presumes all firms engaged in the development of distribution of goods to end users are part of a network, supply chain, or channel. It entails what it takes to satisfy customers and forecast what goods they will purchase, how to produce and how to deliver to them (Simchi-Levi, Kaminsky, & Shankar, 2008, pp. 54-63). Moreover it makes sure that customers attain their ordered product at the right time at an adequate price and at the nearest location. Geographical opportunity, increasing competition, and complexity in the business world have generated dissemination of the capabilities of the personal computer and internet which enhanced the communication and data exchange, assisting the essential stream of information linking the firms in the supply chain (Samuel, Sheoran, & Wang, 2010).
Supply chain management can reduce cost and cycle time if the firms collaborate with the innovative network and technology. It become more complex the larger the company and its range of products, and the international locations of its suppliers, customers, and distribution facilities. The firms may be part of several pipelines at the same time. A manufacturer of artificial rubber, for example, can at the same time be part of the supply chains for tires, shoe material and footwear,...
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