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Features of Supply Chain Management

Features of Supply Chain Management

Recently, the pressure of the competitive market and new information technologies has affected the structures of the production systems, calling for a reduction of time to market, higher flexibility of the systems, drastic reduction of costs, and extended quality concepts. To further understand the significance of the supply chain, let’s talk in-depth about its aspects.

Watch our interactive expert-led video to have a better understanding of the Supply Chain Management

What is Supply Chain Management?

Supply chain management (SCM) is the management of the distribution of goods, data, and money from supplier to consumer. Supply chain management controls the flow of products and services between manufacturers and consumers.

What is Supply Chain Management?

It oversees and controls a wide variety of operations, commencing with the acquisition of raw materials and ending with the delivery of the finished product to its intended location.

The best technique is feasible for supply chain management to control the whole organization’s production flow system. Supply chain management mainly focuses on the organization’s supply chain to be established and maintained.

Supply chain management is playing an integrating role that is primarily in charge of connecting key business operations and procedures both within and across organizations to create a well-rounded and effective business model.

It coordinates processes and activities with and across marketing, sales, product design, finance, and information technology. It incorporates all of the logistics management functions mentioned above as well as manufacturing operations. Nowadays, it is a crucial component needed for any organization to operate flexibly and offer clients better service.

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Top 10 Features of Supply Chain Management

There are various key supply chain management features that you want to look for when you are searching for supply chain vendors. If you can find these features in your business then there is more possibility for growth in your respective business:

Top 10 Features of Supply Chain Management

To know the importance of ‘logistics and supply chain courses’ for you, read our blog here.

Improved Efficiency

Efficiency is one of the most important goals of supply chain management. A crucial aspect of supply chain management is minimizing waste. Waste can take many forms, including waste of resources, money, labor hours, delivery times, etc.

For instance, if your business uses ERP software to update inventory data in real-time and share it with a supplier, it may quickly restock its stock to satisfy customer demand. While it might be challenging to learn but can be quite helpful for the success of your company as a whole.

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Optimization of Transportation and Logistics

The improvement of logistics and transportation is yet another crucial objective of supply chain management. Each firm is in charge of its own responsibilities with regard to placing orders, sending packages, and transporting items in a free-standing business setting.

With any vendors or customers you do business with, SCM gives you the ability to optimize your transportation and logistics operations. Orders are automatically inputted into a system, which alerts nearby facilities that more resources are needed to fulfill this request. Because of this, the procedure is fairly frictionless.

Also, learn about the supply chain strategy through this blog.

Lower Cost Expenses

Reduced operational cost is the main goal of supply chain management. The cost of all business expenses, including those related to purchasing, producing, and transporting goods, is reduced by creating an effective supply chain.

The holding period for both raw materials and completed items may be decreased by enabling a seamless flow of raw materials between a supplier and a business and the movement of finished goods between a company and its clients. Losses are thereby minimized, and total organizational costs are maintained to a minimum.

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Provides Customer Satisfaction

Customer happiness is another aspect of SCM, as the supply chain is the best channel for providing customer care. Pricing and delivery are the two most important factors, and SCM directly affects them.

You may surpass your rivals in terms of retail price and profitability by having an effective supply chain. You may meet or surpass your customer’s expectations for product delivery with the help of high-performing operations.

SCM always gives clients what they want, when they want it, and at a low price since these things raise the likelihood that they will continue to be satisfied.

Check out the supply chain management courses in Canada to learn more about its concepts.

Better Distribution System

The organization in charge of running the firm benefits from supply chain management since it streamlines the distribution process. To ensure the quicker circulation of products, it is essential to create adequate coordination between the various transportation channels and warehouses.

SCM helps businesses to cut costs while providing products more quickly. This leads to an improvement in the overall distribution system, which immediately helps in the timely and accurate delivery of goods.

Also, check out the blog on Supply Chain Optimization.

Cloud-Based Accessibility

Authorized users may access and use cloud-based supply chain management tools from any location, at any time, and on any connected device. The biggest benefit of this feature is that cloud-based solutions may be set up more affordably, more quickly, and with less risk than on-premise ERP systems.

Keeping Improved Coordination

Supply Chain Management focuses on improved coordination between the business stakeholder. A communication channel is created that allows employees, customers, and suppliers to communicate with the company efficiently. In an emergency, employees may contact their managers through the established route, and managers can promptly lead their workforce.

Self Service Portals

In a supply chain network, many partners working from various places are included. Due to their inability to constantly communicate, communication problems arise.

Business partners may exchange plans and information depending on their actions and preferences via password-protected self-service portals, enabling continual contact whenever necessary in the field of supply chain management.

Performance Measurement

The measurement of performance measures by looking more closely at the operations is one of the key components of supply chain management. The most important technique to promote responsiveness and creativity in a business is by using metrics analysis based on the processes to gain insightful data.

An efficient SCM guarantees a clear picture of the business operations and helps in determining the KPIs that need to be developed. In order to increase overall business performance, a measuring system must be established for a standard process architecture.

Go through our blog for the complete guide on how to write an SOP for Supply Chain Management


Another crucial component of supply chain management software is security. Be sure the cloud-based system you choose for supply chain management has security features like Data encryption, network monitoring, virus scanning, multi-factor authentication, and role-based authorization.

Also, read about the bullwhip effect in the supply chain.

Summing up

The best companies around the world are discovering a powerful new source of competitive advantage. It’s called supply-chain management and it encompasses all of those integrated activities that bring products to market and can make customers satisfied. Therefore, features of Supply Chain Management and SCRM may provide businesses with an unrivaled chance to boost revenues.

If you still have any doubts or queries in your mind then ping your queries on our Intellipaat Community Page.

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About the Author

With a decade-long immersion in the field of testing and as a Software Tester, Varija is well-versed in tools such as Selenium, JIRA, and various testing frameworks. Her proficiency in Testing adds value to her content writing.