Supply chain management. You know what it is and you’ve likely even implemented it into your business. As we know Supply chain management is a crucial business activity for any organization that sells products. From a simple one-man Amazon business to a multinational corporation selling an incredible number of units yearly, supply chain management is a complete necessity to ensure that both the financial model and the distribution model are as effective as they can be.

What is the overall goal of supply chain management? Here are the five main goals, explained.

Improving Efficiency

At its most fundamental level, the Supply Chain management objective is to ensure that inventory is readily available in customer-facing positions to meet demand. Organizations must strive to match supply and demand on time by making the best use of cross-chain resources. Partners in the supply chain must collaborate to maximize resource productivity, standardize processes, avoid duplication of effort, and reduce inventory levels. These processes will help the firm in reducing waste, reducing expenses, and increasing supply chain efficiency.

Improving Quality

Reducing waste is not the only aim of supply chain management. Ensuring that the product and the customer experience are as positive and as effective as they can be is yet another significant goal.

Increase Flexibility

Another critical reason to invest in supply chain management capabilities is the capability to adjust to change. The current business environment is volatile, with numerous factors influencing how organizations run and survive. Supply chain management can assist businesses in adapting to the challenges of globalization, economic instability, and rising consumer expectations, among other concerns.

Improving Stability

Supply chain management is also about improving and maintaining the overall stability of the supply chain. Companies can make an effort to forge and keep strong relationships with their suppliers and distributors to ensure that business will continue to run smoothly.

Monitor Financial Success

One of the most obvious goals of supply chain management is to contribute to the organization’s financial performance. Historically, cost-cutting strategies have focused on streamlining stock levels to reduce inventory carrying costs, automating fulfillment operations to reduce labor costs, and consolidating orders to reduce freight costs.

Conclusion

For your organization to accomplish such lofty and complex supply chain management goals, you will need some guidance, software, resiliency, and support. 13SQFT's world-class service does just that. Our specialists work directly with you to build a smarter, safer supply chain boasting the most recent technology that provides clarity and confidence. We’re going to help to improve safety, quickly qualify and vet suppliers, visualize opportunities and risks, and lower costs.