Importance of Speed in Supply Chain Management

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The success of Supply Chain Management System is determined by the maintenance of balance between the production and stock keeping levels within limits. Even though there are several factors comes into play regarding the supply chain management speed and the quickness in responding is the most crucial element to be monitored.

The first part to be monitored is about keeping the right level of raw materials and supplies to meet the production and shipment running smoothly. If there is a shortage of raw materials due to the delay in getting them from vendors then the supply chain will be broken. It is also same when the shipment is not delivered to the customer on time due to the delay in production. This will affect the company getting more orders from the customers. Acting fast for ensuring the levels of stocks in both raw materials and products at the minimum level to keep the supply chain to be effective.

Proper maintenance of inventory level is the most critical part of the supply chain management process. The level of inventory should not fall below the levels and the company should not face a crisis because of shortage in inventory. The opposite also is a burden to the company as surplus inventory can increase the stock levels which wastes the space at the manufacturing unit. Taking timely decisions at a faster pace to keep the inventory at the desired level is the role supply chain manager can fill in the company.

Sometimes if the inventory stocking increase it is essential to give of product discount offers to maintain to a lower level. Contacting customers in advance to meet the order levels is also critical for keeping the inventory stable. Giving wholesalers and suppliers the products at lower margins is also essential in keeping the production running smoothly without excess inventory storage.

Supply Chain

Related Links: Strategic Human Resource Management PG Diploma | PG Diploma in Strategic Project Management | Retail Management online Postgraduate Diploma

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