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The Benefits of Supply Chain Management | XL Logistics Blog

The Benefits of Supply Chain Management

Posted on 09. Oct, 2015 by in Logistical Management

Supply chain management (SCM) is the process of overseeing materials, information and/or finances as they move along the supply chain. In other words, SCM oversees the movement of products or goods from the supplier to manufacturer to wholesaler to retailer to consumer. SCM is important for a company whether big or small because it makes a supply chain more reliable, more effective and less costly.

More Reliable

If your supply chain has high quality management, it becomes more reliable. You gain complete sight of the supply chain. This means that you are more likely to send high quality products and there are less delays. That all boils down to mean that a customer is more likely to receive their shipment on time, and it is more likely to meet their expectations.

More Effective

The efficiency of a supply chain is greatly increased when good management is involved. You begin to understand the needs of your customers more. That allows you to make your products as demanded, rather than in bulk. This means that you do not have to have huge warehouses full of products that are not yet wanted. SCM also gives you a better understanding of your route and your options. This means that if a delay on the roads is going to hamper the efficiency of your shipment, you have other options for getting the shipment delivered.

Less Costly

Proper SCM also reduces the cost and risks of logistics. Because you are now able to make your products as demanded, you are less likely to have products go out of date or get ruined in a warehouse. SCM also helps you identify the risky parts of your supply chain. Maybe you use a supplier that is constantly late or sending bad products. With proper SCM you can identify and eliminate that risk.

Start Using SCM Today

In order to increase you company’s output and efficiency while reducing some risks, you need to start using SCM. You can add your own logistics department, or you can eliminate some of the stress and hire a third party to provide these types of services to you. No matter which way you go, you will see improvements in your supply chain.

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