In this chain, a large number of companies come into play that, in some way or another, intervene in the process necessary for the product to reach the final customer in the best conditions. However, associated with this whole cycle of suppliers, wholesale chain, retailer, and final customer, there is an economic flow among the participants that gives rise to the concept of Supply Chain Finance (SCF). Proper management of these financial flows will be essential for the proper functioning of the supply chain and the organization. In this way, problems of lack of liquidity are avoided, and relations between all members of the chain are improved. One of the key elements in any company’s logistics is the supply chain, and within it, management is the essential element of operational efficiency. The management of the supply chain must be executed to guarantee the clients’ satisfaction and the company’s success. Due to the fundamental role of management in the supply chain within organizations, employers are always looking for employees who have many skills and knowledge that allow them to conduct business operations efficiently.
Globalized supply chain
If we think carefully, you can say that the world is a large, globalized supply chain. In other words, the supply chain touches on important issues, such as the rapid growth of multinational companies and strategic associations, expansion, and global sourcing, including the fluctuation in the prices of certain products. Each of these issues significantly impacts the corporate strategy and the delivery of results. Due to new trends, supply chain management is the most crucial business discipline at a global level, regardless of whether it is a small company or a multinational.
Impact of supply chain management in business
The impact of supply chain management on business is notorious; it can even be classified as exponential. Two of the main aspects where this impact can be seen include:
- An increase in customer service supply chain management directly impacts Customer Service, making sure to deliver the right amount and product at the right time. In addition, these products must be available in the location that customers have specified. Therefore, customers must also receive quality in terms of after-sales support.
- The cash flow increases. Supply chain management also increases cash flow because if the delivery of the product can be accelerated, the benefits are also received quickly. Companies greatly value the management of the supply chain as it reduces the use of large, fixed assets such as plants, warehouses, and transport vehicles throughout the operation.
- Management flexibility. At present, the competition between the companies does not occur so much concerning the final product but with the efficiency of its supply chain. Therefore, having a fully integrated supply chain facilitates greater flexibility in the process and makes its operation much more optimal.
- Optimized inventory management Indeed, before a well-integrated supply chain, the inventory may be adequate so that the quantity of raw materials and product available in the chain is just enough to be delivered to the customer, thus avoiding a shortage or problems of excess stock.
It is also important to mention that supply chain management helps simplify everything practically, from the products of the day to day, to the flows of unexpected natural disasters. By using the right tools and management techniques, companies can correctly diagnose problems while avoiding interruptions and, in turn, determine the best way to move products more efficiently if a crisis occurs. All this at the end is also related to the logistics of the company and therefore you should never lose sight of it.About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.