Key Issues for the Effectiveness of Supply Chain Management
In today’s highly competitive and unstable economic environment where organization face intense competition and need to develop strategic plans regarding their business activities to be successful hence, this can be achieved by having an effective supply chain and inventory management that can become a competitive advantage for the company. There are many issues that companies face today that hinders their performance and reduce their competitiveness in the market.
Mainly this is due to ineffective planning and management of the resources and business processes. Companies are unable to achieve an effective and efficient supply chain because of several issues. The first key issue is about the standards of quality of raw material suppliers (Venkatasamy, 2007). If there are high standards of quality, it will become one major key factor towards company’s success in terms of high customer satisfaction and demand for the goods and services.
Secondly, the quality of services provided by different intermediaries in the supply chain which means when there is efficient services being provided to each next level in the process of supply chain (Venkatasamy, 2007). Therefore, it will lead to minimum errors and saving of time. Moreover, the policies regarding transferring of information in the supply chain is very important. Today, businesses do not emphasis upon these aspects that can improve the supply chain and lead to reduced costs for the company and eventually facing heavy losses and failures. Conclusion
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Competitive advantage provides a business a unique position and strength that makes it successful in the challenging and fluctuating economic environment. This competitive advantage can be achieved through effective planning and management of supply chain. Supply chain can become effective primarily by the use of E-Commerce applications and by integrating each level of the supply chain with effective planning. Moreover, in unstable economic environment, organizations must give major importance to the customers as they are the key factor towards the success of any organization.
Therefore, implementing these customers’ value and expectations in the supply chain will further improve the company’s performance and competitiveness, Analyzing and evaluating the current and future threats and opportunities to face the challenges of unstable economic environment leads to a company’s ability to compete successfully and achieve its objectives.
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