Efficiency, increased profits and cutting costs are all benefits that an efficient supply chain can provide, if it is effectively run. However, unless immense strategy and logistical thought is provoked, a supply chain can have adverse effects on a business. Consumer choice and demand dictate what is manufactured, so management must be able to control what is being produced. Goods are being created at a lower cost and faster speed, and so the knowledge of consumer demand is essential.
Supply chains impose the issue of large volumes of information traveling between distributors and contracted businesses. Outsourcing jobs and responsibilities can become complex, thus, the most challenging attribute of a supply chain is maintaining order and control whilst turning a profit. Management faces the challenge of configuring an information network and handling it in regards to where raw goods, works in progress and finished goods are being created and distributed. The movement of information, money, and goods is incessant so this knowledge must be organized and managed.
Although there are difficulties imposed when managing a supply chain, in order to be profitable many modern companies are faced with the challenge of running efficient supply chains.
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