Why is supply chain management important?

The goal of supply chain management is to maximize value and achieve a sustainable competitive advantage. Moreover, supply chain management helps companies reduce their carbon footprint by critically looking at each component of the supply chain. Until recently, companies didn't consider the chain of activities that ultimately delivered their product to the final customer. The chain is as strong as its weakest link. A poor relationship within any link of the supply chain can have disastrous consequences for all other supply chain members. Supply chain management is important to improving efficiencies, not only within the organization, but also among all the components of the production and distribution process. In addition, companies are seeking ways to strengthen their global presence by positioning inventories so products are available when customers want them, regardless of location, in the right quantity for the right price. This can happen only if all components along the supply chain are working together.

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