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Supply Chain Management and It’s Importance.

Supply chain management is a critical component of modern business operations, and it plays a vital role in ensuring a company's success, customer satisfaction, and overall profitability.

Here's why supply chain management is so important:

  1. Improved Customer Services: Ensuring products are available when and where they are needed is crucial for customer satisfaction. Whether it's car parts for a brake repair or quick support for a warranty-covered furnace repair during extreme weather, efficient supply chain management is essential for providing timely solutions to customers.

  2. Reduced Operating Costs: Effective supply chain management reduces various costs in the following ways:

    • Decreased Purchasing Cost: Swift distribution of costly products helps prevent costly inventories from piling up.

    • Decreased Production Cost: Delays in production can be very expensive. Reliable delivery of materials to assembly plants helps avoid costly manufacturing delays.

    • Decreased Total Supply Chain Cost: Wholesale manufacturers and retailer suppliers rely on proficient supply chain management to design a network that meets customer service goals, giving businesses a competitive edge in the marketplace.


  1. Improved Financial Position: Supply chain management helps companies improve their financial standing by:

    • Inserting Profit Leverage: Control and reduction of supply chain expenditures contribute to higher profitability.

    • Decreasing Fixed Assets: Supply chain managers reduce the need for large fixed assets such as plants, warehouses, and transportation vehicles, resulting in cost savings.

    • Increasing Cash Flow: Efficient supply chain management accelerates product flows to customers, improving cash flow.


In today's fast-paced digital age, automated systems and high-speed communication have transformed the world of commerce. These advancements have made supply chain management more critical than ever before. As a result, supply chain management is no longer just an operational function; it is an integral part of business success and customer satisfaction.

To support supply chain management, Planvisage SCM offers key features, including inventory management, warehouse management, order fulfillment, supplier management, demand planning, sales and operations planning, scheduling, electronic data interchange, automated scheduling, Material Requirements Planning (MRP), capacity planning, and what-if analysis.

These features enable businesses to streamline their supply chain processes, reduce costs, and enhance customer service.

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