Today most of the global companies are forced to keep looking for a production center where cost of labor and raw material is cheap and in order to compete in the global market and networked economy, SCM is very helpful for organizations.

1. Importance of Supply Chain Management
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Before knowing importance of Supply Chain Management, there is need to understand what actually
SCM is? Supply chain management is the systematic and the strategic coordination management for
supplying goods and products required by the end customer. Or we can say that a practice of products
that reaches to an end user and represents the efforts of the organization is known as supply chain
management. It represents a conscious effort by the supply chain firms to develop and run supply chains
in most effective and efficient ways possible.
Supply chain management activities cover almost everything such as from products to its development,
sourcing, logistics and even information system also. The main objective of SCM is creating net value,
building a competitive infrastructure, synchronize the goods supply, measures the performance globally
and leveraging worldwide logistics etc.
Today most of the global companies are forced to keep looking for a production center where cost of
labor and raw material is cheap and in order to compete in the global market and networked economy,
SCM is very helpful for organizations. Various activities are there in an organization which needs
strategic management like sourcing of raw materials from different place and then from different
locations these finished goods are passed through different chains of distribution network which
includes retailers, distributors and end customers.
Importance of SCM
SCM plays a vital role in organization activities and an essential element to operational efficiency which
can be applied to customer satisfaction and company’s success. You can say that it is just like the
backbone of an organization which manages the critical issues of the business organization such as rapid
growth of multinational corporations, global expansion and environmental concerns which indirectly or
dramatically affects the corporate strategy.
Other benefits and importance of supply chain management are:
Reduces inventory costs
Provides better medium for information sharing between partners
Improves customer satisfaction as well as service
Maintains better trust between partners
Provides efficient manufacturing strategy
Improve process integration
Improves bottom line (by decreasing the use of fixed assets in the supply chain)
Increase cash flow
Improves quality and gives higher profit margin

2. SCM offers various tools and techniques that help business organization to diagnose the problems and
also provide solutions of these disruptions around the business environment. It plays an important role
in moving goods more quickly to their destinations. The most important thing in today’s business is
managing competition among partners and in order to win this competition SCM helps business
organization in a very efficient manner. All the benefits and importance of SCM makes its future so
bright and because of emerging trends in organization SCM becomes the most critical business discipline
in the world today.
InterraIT's Supply Chain Management companies is an integrated end-to-end legacy Application
Modernization. It streamlines and mobilizes manual business processes making real time information
available at the click of a button.