Supply Chain Management Strategy
Every business has a variety of challenges and the most common one is building successful supply chain management strategy. The true definition of supply chain management (SCM) is the “active streamlining of a business’ supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.”
Typically, SCM attempts to help link the production, shipment and distribution of a product or service. Companies can use SCM strategies to keep tighter control of internal inventories, internal production, distribution and sales – which allows them to deliver products to consumers faster and avoid storing excess materials with inventory reduction.
Every company struggles with balancing inventory supply and demand, but those which implement SCM strategies can overcome those obstacles. SCM drives more efficient performance within production, product development, and other crucial departments.
It may not be apparent right away, but one of the greatest benefits to a successful supply chain management strategy is the reduction of costs. If a company can achieve success with a supply chain management strategy, they could save thousands of dollars per day on spending for product materials, packaging, or even warehouse costs.
Storing excess inventory in a warehouse can waste valuable dollars. If your company does not have a supply chain management strategy and excess inventory is an issue, there are options to consider. A third-party like AECI can provide assistance and help consolidate or sell excess inventory on your behalf.