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Updated by Shikha Paul on Nov 26, 2020
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Shikha Paul Shikha Paul
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Importance of Supply Chain Management in India's Industry Sector

Listly by Shikha Paul

Supply Chain is a linkage sector which involves the management of an entire process of creation to consumption right from supplying the raw materials, their movement and progress to the work-in-process inventory and delivery of the finished goods. It facilitates the end-to-end order fulfilment from point of origin to point of consumption.

An efficient supply chain is extremely essential for the smooth functioning of any industry

1

Boosts customer experience

For all logistics company, Customer satisfaction is of the utmost importance. And this is only possible when the customer receives the correct product assortment at the right time. Through an efficient and holistic Supply Chain, which includes freight forwarding, logistics, consolidation and transportation, a company can ensure the smooth shipment of its products.

2

Scales down the operating cost

  1. Decreases Purchasing Cost- This is specifically applicable for retailers who depend on supply chains to deliver their products to customers as and when required to avoid holding highly costly inventories.
  2. Decreases Production Cost- Manufacturing companies like that of automobiles and machinery are highly dependent on supply chains for the shipment of raw materials required at the assembly plants as an unexpected delay of a single part can cause a loss of crores.
  3. Decreases overall costs- Both the manufacturers and retailers desire to meet their customer service goals in the least cost possible. This is possible by enabling potent supply chains and networks designed for a cost-efficient process
3

Accelerates rural and urban consumption growth

By improving the freight forwarding and transportation services, the market access is widened and the reach increases by many folds. Ocean freight and air freight transport aid international business. This increases the scope of audience and profit gaining capabilities of a company.