Now, if in this example showing only three supply chain
partners , absence of a critical information among
is of production forecast at XYZ firm results into either a
higher inventory level or loss of future business what would
happen if the supply chain consisted of a large number of
partners, a scenario normally existing for medium to large
sized companies ,the world over ?
In an era
of gaining competitive advantage through reduced
inventories all over ,a company is going to have
terrible disadvantage of having to carry unnecessary
inventory for the fear of losing future business.
The importance of Supply Chain Management thus is in :
Reduced inventories along the chain
Better information sharing among the partners
Planning being done in consultation rather than in
The benefits too would be reflected in terms of :
Process integration and other efforts result in improved
quality as higher profit margins shall get reflected in
creation of better facilities for manufacturing, product
design research, enhanced customer service.