Why Is Supply Chain Important For Businesses? Supply Chains?

3746 Words Sep 18th, 2014 15 Pages
Why is a supply chain important for businesses? Supply chain is a chain of interconnected links that facilitates the movement of supplies, materials, products, and so on (Arway, 2013, pp.3). Supply chain management has become the critical backbone to businesses today (Management Study Guide, 2013). The reason comes from the fact that effective market coverage and availability of products at market locations depends on the effectiveness of supply chain management. Any fault in product not being available at the right time can cause drop in customer interest and demand which can be catastrophic. On the other hand, effective and secure supply chain can successfully boost customer service in following four aspects (Council of Supply Chain Management Professionals, 2011). First, customers can expect the right product assortment and quality to be delivered. Second, customers can expect products to be available at the right location. Third, customers can expect products to be delivered on-time. Fourth, customers can expect products to be serviced (after sales support: repair and return) quickly. Because customers favor a company which accomplish these four expectations, supply chain security is definitely linked with a company’s competitiveness in market. Therefore, practices of supply chain excellent companies will provide beneficial lesson for prospective managers. Amazon is the most admired company for supply chain excellence among the leading community of supply chain…

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