Supply Chain Management

SupplyChain Management

Supplychain management

Supplychain management refers to as the process by which effectiveactivities are taken to ensure that the right product is received bythe end-user in the right quality, quantity, and at the right time.The process involves activities from extraction of raw materials tothe point the product is purchased by the consumer (Surace, n. d.).Thus, its aim is to ensure that the purchasing, forecasting andplanning, product assembly, storage, moving, customer service, sales,and distribution processes are done effectively. In addition, Supplychain management professionals involve themselves in these businessprocesses with the aim of achieving a competitive advantage that issustainable. This is done by developing and delivering qualityproducts with the right quantity, at an affordable price to theconsumers (Surace, n. d).

Fora company to compete effectively in the market, the company must havevarious ways of making the supply chain more effective. Consequently,effective supply chain management plays a vital role in creatingcompetitive advantages for an organization. Thus, companies shouldtake the responsibility of investing their resources and time supplychain management. The following are some of the roles that effectivesupply chain management plays to secure competitive advantages.

Firstto market

Accordingto Burt, Petcavage, &amp Pinkerton (2010), effective supply chainensures that the company gets new and functional product first tomarket, making it a leader thus, it becomes the first to enjoy abeneficial marketing edge. Also, new suppliers become interested, andthey help the company to secure more competitive advantages by makingthe supply chain more efficient.


Productsthat are custom made and meet the client’s requirements are madefast through effective supply chain. Thus, customers can get theirproducts faster than they can get from the competitors thus thecompany becomes an option for large clients (Petcavage et al., 2010).


Burtet al., (2010) suggests that a system of supply chain management thatis effective ensures that only suppliers with quality products andbest pricing are used. Therefore, it becomes easy for a company tokeep production needs in line with the raw materials, and as aresult, profits are increased, and manufacturing cost is reduced(Pinkerton et al., 2010). Consequently, the retail prices are reducedthus attracting more consumers.


Companieswith effective supply chain management adapt very easily to thechanging markets. A quick change of vendors is done quickly foreffective services. Also, new sources for new products are found,thus making the company to be at the top of competition (Surace,n.d.).


Burt,D. N., Petcavage, S. D., &amp Pinkerton, R. L. (2010). Supplymanagement(8th ed.). Boston: McGraw-Hill Irwin.

Surace,K. (n. d.). Strategic Sourcing – CPO`s Speak. You Tube. RetrievedOctober 8, 2014, from