The importance of supply chain decisions can’t describe in a word. There is a close connection between the design and management of supply chain flows. Besides, the successes of the supply chain also depend on it and the three supply chain decision phases.
In supply chain management, all parties are directly or indirectly involved with each other to fulfill the demand of consumers. It does not include only the manufacturers and suppliers but also agents, brokers, retailers, wholesalers, and customers themselves. In organizations, the supply chain involves receiving and fulfilling customer demand. It may be new product development, marketing .operations, distribution, finance, and customer service.
See the supply chain of Wal-Mart and Amazon. It will give you a clear scene of the importance of supply chain decisions. They are the most successful companies in the world. Because they are successful to manage their supply chain decisions most effectively. They have built their success on superior design, planning, and operation of the supply chain.
In contrast, the failure of many businesses must depend on effective supply chain decisions. Weak supply chain decisions can’t bring success to organizations. Sometimes, we can see that, some companies’ supply chains can’t adapt to the changing nature of the supply chain. Moreover, they also fail to meet customer expectations.
For example, Dell Computer Company has great supply chain decisions.
That’s why they become more successful than any other company. Their suppliers are much more attentive to adapting them to the changing nature of the supply chain. Because they are technologically advantaged and connected with each other. Besides, they have the capacity to meet the customers’ expectations.
Wal-Mart is the leader in using the supply chain. let’s see how. Wal-Mart has a great supply chain design, planning, and operations decisions to become a success. It has a direct link up with its suppliers. When a company established its business, it has to invest a huge amount of money in transportation and information infrastructure to facilitate the effective flow of goods and services. Whereas, Walmart designed its supply chain with clusters of stores around the distribution centers. So that it can facilitate the effective flow of goods and services in a cost-effective manner.
Frequent replenishment allows Walmart to match supply and demand more effectively than its competitors. That’s why It has been a leader in sharing information. Besides, it also collaborates with suppliers to bring down costs and improve product availability.
This is so impressive.
Besides, Seven –eleven Japan is another example of showing the importance of supply chain decisions. It has used excellent supply chain design, planning, and operations. That’s all driving growth and profitability of Seven-eleven Japan. It also used a very responsive replenishment system to maintain its business. This system is to maintain information to ensure that products are available to the customers where they need them.
Besides, the failure also depends on supply chain decisions. The inability to manage supply chain decisions causes the failure of the business. So, The importance of supply chain decisions is really very important for all businesses. Besides, there are 6 Recent trends influencing the supply chain around the world.