Supply Of Supply Chain Management

Decent Essays
Supply Chain Management
Goal of a supply chain. According to Defining the Supply Chain, there are 5 specific goals of supply chain management. They are as follows:
1. Achieve Efficient Fulfillment – “the purpose of supply chain management is to make inventory readily available in customer facing positions to fulfill demand. The fresh produce business adage “you can’t sell from an empty wagon” highlights this fundamental purpose of supply chain management”. (Defining the Supply Chain)
Organizations must pursue the goal of matching supply with demand in a timely fashion through the most efficient use of cross-chain resources. Supply chain partners must work together to maximize resource productivity, develop standardized processes, eliminate duplicate efforts, and minimize inventory levels. Such steps will help the organization reduce waste, drive out costs, and achieve efficiencies in the supply chain.
2. Drive Customer Value - Cost efficient fulfillment and inexpensive products are important, but supply chain managers must also focus on value creation for their customers. Customers are the lifeblood of the organization and create the need for a supply chain. Hence, a fundamental objective in supply chain management must be to consistently meet or exceed customer requirements.
The goal of driving customer value begins with a market-driven customer service strategy that is based on clearly understood customer requirements. Supply chain strategies, design, and capabilities
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