Importance Of Supply Chain Management In a Retail Business

 

Supply Chain Management (SCM) is a process of monitoring the chain system in an organization that deals with moving a product from the supplier to the customer. This will reduce operation costs, improve customer service, and enhance the revenue flow of a company. 

If you want a solution to control your product distribution system, get an integrated logistic & supply chain management. There are consultancy firms that focus on electronic customer and vendor connection technology for consumer products, for both industrial and retail companies. Their services support your relationships with customers and vendors and delivers these services on a cost-efficient basis.

How a supply chain works
A supply chain can be applied to various economic sectors but for now, let us focus on the retail business for better understanding. Here is the basic explanation of an order lifecycle in an online  retail business company.

1.Customers visit the store and place an order from the storefront.
2.The invoice is approved by the chain operators.
3.The buyer pays for the item through an e-wallet or online transaction.
4.If there is a shortage of inventory, the outlet informs the storeroom manager.
5.The storeroom manager contacts the manufacturing unit or source of the product.
6.The manufacturer ships the products to the warehouse of the retail company.
7.From the warehouse, the product is transported to the storeroom.
8.The product is delivered to the customer.

If you want a smooth operation of your business, contact a B2B consulting firm that provides supply chain management software solutions to vendors, retailers, and 3PLs.

Benefits of Supply Chain Management

A convenient way to arrange the SCM is to monitor the chain hub using an integrated system. It is the technology that connects to several points such as e-commerce sites, retail stores, vendors, warehouses, and end consumers. The key benefits of using an SCM solution includes:

1.Reduce cost by cutting down on overhead expenses for inventory improvement, facility management, eliminating damage resources, and strengthening relationships with customers as well as distributors.

2.The real-time system improves communication systems between vendors and customers to get accurate results.

3.Increase revenue growth by increasing productivity using innovative technologies.

The flawless supply chain is guaranteed if the company is using a sustainable SCM solution. Whether there is an urgent product demand or need for canceling an order, logistic & supply chain management will help you keep up with the business operation by getting an instant response.