Organization Behavior: Organizational Theories

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// In this paper, supply chain management is discussed. In the foremost portion of the paper, a brief introduction of supply chain is presented. Supply chain refers to the list of activities involved in the transportation of raw materials from the production site to retailers. In the later section of the paper, the supply chain management is discussed. The importance of SCM to the companies is also mentioned.//

Introduction

Supply chain refers to network of activities, organizations, capital, and technology involved in the procurement of the mat, as well as their supply from manufacturer to the customer. The supply chain activities integrate the conversion of raw material into finished goods. In other words, it refers to the logistics and distribution of goods and services from the supplier to the end user. The intricacy of activities depends upon the nature of the product. Every industry has a different set of inventory and distribution requirements (Zigiaris, 2000). Therefore, to provide a better procurement of inventory and distribution of goods and services, a management system is created named as Supply Chain Management. This management system engrosses a better executive plan for the materials and supply management. The Supply Chain Management provides enhanced coordination and integration of the raw material and finished goods between the manufacturer, wholesalers and retailers (Wisner, 2011).

Importance of Supply Chain Management

The SCM system is an indispensable term for any business organization. Every business organization, which deals either in the product or service, feels the importance of supply chain management system. This system contributes in achieving effectual market coverage. The availability of products and services at required destination is possible only through effective supply chain network. A superior collaboration with vendors and distributors are possible with this mechanism (Wisner, 2011).

The inventory, which directly contributes to the cost estimations is better managed and controlled by the Supply Chain Management. The company, which adopts this management system, ...