Supply chain management can provide benefits to retailers and consumers alike
Business location and distribution are closely linked with the relatively new - term supply chain management. A supply chain is a
network of facilities and distribution options that performs the
functions of procurement of materials, transformation of these
materials into intermediate and finished products and the distribution
of these finished products to customers. Supply chain
management focuses on the production and distribution of goods from raw
materials to finished products in the hands of consumers in the best
time and cost efficient manner possible.
Traditionally,
marketing, distribution, planning, manufacturing, and the purchasing
functions along the supply chain operated independently. These functions have their own objectives and are often conflicting.
Supply chain
management is a means of making integration occur. In doing so,
retailers', and through them consumers' needs can be more
efficiently met with shorter more efficient lead times with benefits to
retailers and consumers alike. Shorter supply chains can also yield significant competitive advantages.
