What are the benefits of supply chain management?

What are the benefits of supply chain management

Unless you’re familiar with logistics and supply chain management, the chances are that you won’t have any clue as to what the benefits of supply chain management are. If you run a business and are not sure what supply chain entails or a yet to wrap your head around it, not to worry because we have got you covered.

Before we dive into the top benefits of supply chain management, let’s take a second to understand what a supply chain is and then walk our way up from there. That way, we will all be on the same page, and you will have understood the basics of the subject — supply chain.

What is a supply chain?

To not bore you with technical terms and textbook definitions, you can think of a supply chain as a systematic process or series of activities involved in moving a product or service from a supplier to the end-user or customer. Contrary to popular misconceptions, supply chain is not limited to businesses alone, individuals and organizations also leverage supply chain management in their operations.

More on supply chain management

Supply chain management (SCM) is the management of supply chain activities. The idea behind supply chain management is to control the flow of goods from suppliers to their customers or end-users to maximize the customer value and help the businesses gain a competitive advantage.

If you say that supply chain management involves sourcing raw materials and getting the finished product to the end-user without hiccups. Regardless of the size and scale of your business, having an efficient supply chain plays an important role in running a successful business.

What are the benefits of supply chain management?

Supply chain

As we mentioned earlier, supply chain management is the bedrock of virtually successful business. Let’s take a look at the top benefits of supply chain management.

  • Increased efficiency rate

Having a robust supply chain management in place for your business helps you assess and predict the extent of demand for a product and how to satisfy the demand for it. That way, your business will be able to adjust to the dynamic and fluctuating markets.

  • Increased output

Implementing a robust and agile supply chain management in your business ensures that you have smooth communications, collaborations, and coordination with your suppliers and other parties involved in the process — vendors, transport companies, and customers. And you would have ramped up or increased output while building a robust supply chain for your business.

  • Better cost management

Another benefit of supply chain management is that it helps in cost management. If you get it right, you will be able to manage costs associated with inventory system, storing finished goods, and maintaining a healthy relationship with distributors and vendors. As such, reducing the cost of running your business.

Other benefits of supply chain management include increased revenue and eliminating delays; regarding delays, supply chain management helps you mitigate late shipments from vendors through proper communication among all parties.

Specificities And Restrictions Of The Probationary Period

Six points instead of 12 on the driver’s license, this is a powerful motivation not to commit an offense that could cause the withdrawal of the consent. During the first months of the probationary period, a significant speeding and it is (already) finished.

Specific rules of conduct are also stricter for drivers on probationary periods:

The speed is limited to 110 instead of 130 km / h on the motorway, 100 instead of 110 km / h on the expressway and 80 on the roads limited to 90 km /h. Sanctions in case of overrun go from a simple fine of 68$ with the withdrawal of a point to 1 500$ penalty and removal of the permit.

The maximum permitted alcohol level is 0.2 grams per liter of blood, compared to 0.5 for other drivers. This corresponds to less than one milligram per liter of exhaled air, compared with 0.25 mg / l for experienced drivers. Sanctions can be up to 750$ fine, immobilization of the vehicle and withdrawal of the driving license.

“Good to know: the mandatory internship for loss of points

If a driver with a probationary license commits an offense causing him to lose 3 points or more, he must take part in an internship to collect his points, more precisely a road safety awareness course. This course can also be done voluntarily if the number of points lost is less than 3.”