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Why is Supply Chain Management Important?
Anurag Pandey, Student (University), United Kingdom, Member
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Can anyone explain to me why SCM is important? (...) Read more? Sign up for free
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Why SCM is Important
Michel Berscheid, Manager, Luxembourg, Member
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Hello, some reasons include:
- Globalization
- Increased cross-border sourcing
- Collaboration for parts of value chain with low-cost providers
- Shared service centers for logistical and administrative functions
- Increasingly global operations, which require increasingly global coordination and planning to achieve global optimums
These trends have many benefits for manufacturers because they enable larger lot sizes, lower taxes, and better environments (e.g., culture, infrastructure, special tax zones, or sophisticated OEM) for their products
SCM for me is the whole of competences for the a design, planning, execution, control, and monitoring of supply chain activities which gives you the opportunity to achieve better coordination and collaboration with all parties involved.
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