Supply Chain Management And Inventory

STUDENT DETAILS
SUPPLY CHAIN MANAGEMENT
AND INVENTORY

SCM 1
Supply chain management and Inventory
Supply chain management is the management of the activities involved in the supply chain so
that the effectiveness of the supply chain process can be maintained and the organisation can
focus upon maintaining a competitive edge within the industry. As the success of the
organisation is dependent upon its performance and customer satisfaction within the industry.
Therefore, Supply Chain Management is focused on improving the performance of the supply
chain, as an effective supply chain helps the manufacturers in maintaining demand and
supply within the market. The effectiveness of the supply chain can be improved by focusing
on five key areas within the supply chain including; Production, Inventory, Location,
Transportation, Information (Hugos, 2018).
Supply chain management is an important aspect within the management of organisational
activities, as managing supply chain helps the organisation in analysing the key issues within
the supply chain process, and developing strategies so that the issues can be avoided and the
market demand and supply can be ensured. Also, an effective supply chain management
helps in managing the inventory levels and the production process in case of market
fluctuations and ensure that the organisation performance is not affected during the period
(Christopher, 2016).
Effective supply chain results in better customer experience and hence contribute towards
improving the competitive position within the industry. The management is required to focus
upon the changing trends within the industry and implement the necessary technological
changes within the supply chain management of the organisation so that the effectiveness can
be improved. As the industry is becoming more digitalised and the customers are moving
towards online platform, therefore the manufacturers within the industry are focusing on
interacting directly with the customers, therefore it is required that the manufacturer ensure