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Problem

What is supply chain management, and what are the types of functions and firms that make up the typical supply chain?

Step-by-step solution

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Step 1/3

Supply chain management is process in the business that helps companies in linking manufacturer to the supplier of raw material. Supply chain management also helps in linking the manufacturer to the end user of the product.

Effective Supply chain management further helps the businesses in linking supplier and customers to enhance the efficiency and effectiveness.

Step 2/3

Following are the types of functions and firms that make up a typical supply chain:

• Main objective of Supply chain management is establishment of coordination and collaboration of activities between various partners.

• In the business the various participants may include suppliers, intermediaries, third party providers and customers.

• Supply chain management helps the business in minimizing the cost and increasing the revenue by way of enhancing the efficiency and effectiveness of various processes.

• SCM helps the companies in delivering various goods and services on the prescribed time. This helps companies in winning new customers and eventually helps companies in garnering more revenue.

• SCM further helps the companies in integrating the process of procurement to manufacturing which further helps in cost reduction.

Step 3/3

Thus, these are a few types of functions and firms that make up a supply chain management.