Supply chain is a necessary part of any kind of business. It is of high importance for the business and carries a number of benefits if it is properly managed. Supply chain management is capable to providing a business with competitive advantage is a number of aspects such as time, cost, quality, and efficiency (Seghal, 2011). Further in this paper this claim will be discussed in more detail.
Ensuring the best logistics and optimizing the way the products have to travel before getting to the consumers secures the advantage of time. The clients get what they need fast and this creates positive reputation for the business which is an extremely valuable feature for obtaining revenues, marketing and brand image promotion. Besides, supply chain management assumes closer communication with the suppliers. Collaboration and an ongoing dialogue are the keys to cost reduction and increased productivity.
Moreover, better understanding and closer communication with the suppliers would allow a company to influence them and persuade them to pursue more sustainable practices which will positively impact the product quality and the reputation of the whole business (Benefits of responsible supply chain management, n. d.). Besides, the sustainability of the supply chain may be documented and used as the basis for gaining more trust of the consumers.
In fact, this is a very poplar practice in the contemporary world where more and more people search to learn about the products they consume in order to ensure sustainability. This way, a responsible supply chain management is the way to win more customers and gain larger competitive advantage in the market.
In turn, positive relationships with the suppliers and the consumers minimize the risk of brand image damage and negative PR (Benefits of responsible supply chain management, n. d.). As a result, the business becomes a more favorable workplace for the employees, which helps to reduce the risk of such issues as skills shortage and turnover, increase job satisfaction and the retention of valuable human resources. Besides, hiring would be much easier for the company with good reputation as a workplace. In the modern world of business human capital is as important as the financial capital, so responsible supply chain management may result in acquisition of better and more qualifies human resources and ensure future development of the business.
A more sustainable and profitable business with high productivity, good relationships with the clients and suppliers will also become more secure and interesting for creditors and investors (Benefits of responsible supply chain management, n. d.). Reviewing the profile and reports of the business they will notice the value provided by the reliable and optimize supply chain and have higher trust towards the business.
As a result, this will facilitate additional funds and capitals that may be directed for the improvement of the product, brand promotion, or innovations. Besides, a reliable and a profitable business based on a well-built supply chain will have better chances of expanding to new markets and securing its own growth. Supply chain may be a good basis for the company branding as well, which will generate new market opportunities.
In conclusion, proper management of the supply chain improves business is a variety of ways and impacts its relationships with the suppliers, customers, employees, partners and investors and bringing competitive advantage in relation to product quality, cost, time management, and the efficiency of a business (Seghal, 2011). The aspects mentioned above make supply chain management as extremely valuable practice.
Reference List
Benefits of responsible supply chain management. (n. d.). CSR Compass. Web.
Seghal, V. (2011). Understanding Advantage. Web.