The ability to purchase necessities at cheaper prices thanks to modern supply networks helps raise the level of life overall. This is because an efficient supply chain shortens the time it takes to provide goods to shoppers. Divya Jefferson has thoroughly covered the significance of supply chain management, and we can confidently say she has clarified every issue.
Table of Contents
Among the many reasons why effective supply chain management is crucial are:
Necessities of daily living
Management of the supply chain facilitates the distribution of goods such as food, clothes, and medical supplies.
Intensity and illumination
Lighting, heating, and cooling are just a few of the many ways that homes and businesses rely on electrical energy. Energy resources are distributed to customers through the energy supply chain, which includes the conversion of raw materials into usable energy and the application of supply chain management techniques.
Infrastructure
Interstate highways, trains, ports, and airports all help get products from manufacturers to shoppers.
Jobs
Managing the supply chain is an important part of the economy and creating new jobs. Transportation, storage, inventory management, packing, and logistics data are just some of the tasks performed by those who work in the supply chain.
If a factory doesn’t have enough raw materials, for instance, it won’t be able to produce a product that’s in great demand. Consumers may be negatively impacted by sudden price increases due to a shortage of the goods.
The Pandemic’s Disruptive Effects
The present supply chain was severely impacted by the epidemic in a number of ways. For instance, several factories in Southeast Asian low-cost manufacturing centres like Vietnam, Indonesia, and Malaysia shut down or halted output, which had a significant economic impact on enterprises throughout the world.
Any break in the supply chain might have far-reaching consequences. An example of the knock-on effects of the pandemic are as follows:
- The lockdowns caused millions of Americans to remain inside their homes almost simultaneously.
- Quite a few of them placed orders for products like home office equipment and desks for sick kids to use while studying from home.
- The majority of these components come from Asian nations that have seen fatal variations and many
- As a result, several factories had to close, which had a devastating effect on stores since they couldn’t keep up with customer demand.
- Many still-functioning factories cut production, which decreased supply and drove up raw material costs.
Wrapping up
Because there are so many moving elements, supply chain management requires strategies and technologies that can streamline processes, increase efficiency, and ensure accuracy. Information systems are an essential component of supply chain management since they simplify tasks like planning, sourcing, managing suppliers, and data analysis.