Introduction
In current business scenario every giant business organization is adopting powerful new ways of competitive advantage. This is called Supply chain management which includes all integrated activities to bring a product in the market to satisfy customer’s need (Adabi and Omrani, 2015).
The activity of supply chain management integrates all the department like manufacturing, purchasing, operation, transportation and distribution then coordinate between them in a seamless process. The introduction of supply chain management helps organizations to reduce their operational cost by many times. Management of supply chain not only helps to reduce the cost of operation it also saves time which indirectly helps to save cost again. Supply chain management helps to introduce a harmony within the organization and its operation. Since there are many advantages of supply chain management in today’s business culture so there is a great demand of its development. Many researches are going on this subject to develop it to make it more effective in the organizational perspective. In this article it has been discussed in detail about the importance of supply chain management its functions and structures(Chandrasekaran and Raghuram, n.d.).
Importance
In ancient time there was a tale about a tortoise and rabbit. The fast, speedy and overconfident …show more content…
Sourcing is generally comprises of two decisions. First is in house or outsource which is very significant for sourcing. The organization has to decide to perform a task in house or to outsource to a third party. These decisions are made by the impact on the profitability. The second is the selection of supplier. After deciding about the third party it is to decide about the supplier. It is to decide that for a particular task how many suppliers will be there and identify them (Sysoptima.com,
In current business scenario every giant business organization is adopting powerful new ways of competitive advantage. This is called Supply chain management which includes all integrated activities to bring a product in the market to satisfy customer’s need (Adabi and Omrani, 2015).
The activity of supply chain management integrates all the department like manufacturing, purchasing, operation, transportation and distribution then coordinate between them in a seamless process. The introduction of supply chain management helps organizations to reduce their operational cost by many times. Management of supply chain not only helps to reduce the cost of operation it also saves time which indirectly helps to save cost again. Supply chain management helps to introduce a harmony within the organization and its operation. Since there are many advantages of supply chain management in today’s business culture so there is a great demand of its development. Many researches are going on this subject to develop it to make it more effective in the organizational perspective. In this article it has been discussed in detail about the importance of supply chain management its functions and structures(Chandrasekaran and Raghuram, n.d.).
Importance
In ancient time there was a tale about a tortoise and rabbit. The fast, speedy and overconfident …show more content…
Sourcing is generally comprises of two decisions. First is in house or outsource which is very significant for sourcing. The organization has to decide to perform a task in house or to outsource to a third party. These decisions are made by the impact on the profitability. The second is the selection of supplier. After deciding about the third party it is to decide about the supplier. It is to decide that for a particular task how many suppliers will be there and identify them (Sysoptima.com,