HomeSupply Chain Management: How Does it Help Your Business

Supply Chain Management: How Does it Help Your Business

Before you get to supply chain management, it’s important that you have a clear understanding of what supply chain entails. In a nutshell, it comprises all the procedures and steps that your business has to complete to ideate, manufacture, supply or distribute a product. Your supply chain starts with you developing a product and ends when you dispatch it to your vendors or end customers.

So, supply chain management is nothing but ensuring that each cog in your supply chain wheel is running optimally. By doing so you can ensure cost-effective operations, higher customer satisfaction and having a leg up on your competitors. Supply chain management also focuses on the best possible way to do so while keeping costs in mind.

Now that you have a clear picture of what supply chain management entails, take a look at why it’s important.

Lower inventory costs

Whether you’re selling wires or healthy flours, having an inventory where elements like harsh weather, humidity, insects and miscreants don’t harm your product involves substantial investment in security and climate control systems. Here, supply chain finance can help you spend only as much as you need to, as holding inventory for longer than necessary drains your finances at a rapid pace.


For instance, as a manufacturer of firecrackers if you have identified that demand is at a peak during 3–4 months of the year, it makes sense for you to increase production specifically during those months so that you’re not maintaining elevated stock throughout the year. Likewise, if your healthy flours have a short shelf-life, supply chain management will allow you to stagger your output, so it isn’t blocking your money. If your product crosses the expiry date on the shelves of the warehouse, you’ll have losses to tackle.

Capitalise on demand

Assume that you notice a spike in demand for your product during certain months of the year or due to new lifestyle trends gathering momentum. If you’re not able to optimise your production and distribution, you’ll not be able to capitalise on this increase in demand and may lose out on profits as well as market share. Here supply chain management helps you run a lean operation through which you can accrue benefits for yourself, and meet your customers’ expectations better.

Streamline cash flow for your business

With efficient supply chain management, you can identify the areas that need work and steps that are eating into your profits. You’ll be compelled to look for more affordable alternatives, and those that reduce the time it takes for you to complete your supply chain. For each alteration you make, you add a few rupees to your profits. While this may not seem like a lot on a per unit basis, when economies of scale come into play it can result in lakhs saved.


For example, if you’re able to switch to a more efficient and affordable distributor and can save Rs.5 per unit, if you sell 10,000 units per month, it’s a saving of Rs.50,000. Besides, the quicker you’re able to get your product in the market, the quicker you will receive revenue. This will ensure that you always have sufficient working capital to address your varied needs. Similarly, by switching to supply chain management software you may be able to save Rs.7 per unit on inventory costs. This will result in an additional Rs.70,000 saved.

Implement quality control

Since supply chain management requires you to examine every aspect of your business under a microscope, a by-product is that it ensures that you’re offering your customers nothing but the best. When you integrate supply chain management into your day-to-day operations, you’ll be able to spot any internal or external elements that are compromising the quality of your product and eliminate them. While intangible, this will help you prioritise customer satisfaction and garner goodwill.

It’s easy to see that supply chain management has an incredibly profound impact on your business and deserves every bit of your attention. This is why you mustn’t let an issue such as a lack of funds stop you from implementing it. If you find yourself in a pickle, rely on resources such as supply chain finance to manage your supply chain. Supply Chain Finance from financial institutions such will help you get up to Rs.30 lakh without pledging collateral, for a lengthy tenor at an affordable rate of interest. What’s more, with approval in 24 hours and online application and loan management, you can rest assured that the loan will truly simplify your life instead of adding to your responsibilities.

Now that you have a clearer picture of the role of supply chain management, you can implement the strategies that work best for your business right away to eliminate pain points and increase revenue.

Hi I am Zahid Butt Digital Marketing expert & Outreach specialist in SEO I write at & I am also CEO at BUSINESSTOMARK.COM AND MORE THEN 100+ Website List Download | Email:  | +923157325922 Come Whatsap ,

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