Benefits of good Supply Chain Management

Posted by pinnacle sourcing on March 28th, 2017

Previously sourcing through China was very popular part of Supply Chain management; however, it is observed these days, that sourcing through Mexico is a much better option. Some of the benefits of Mexico sourcing are given below:-

•  Mexico consists of a lot of skilled and experienced labor.
  
  
•  It has a sophisticated technology and infrastructure including industrial parks and utility infrastructure.
  
  
•  The land of Mexico is less expensive compared to other places as a result of which it attracts a lot of job, business and manufacturing units.
  
  
•  It has duty free imports of materials and equipment as a result of which the cost involved in the city of Mexico in manufacturing a product  is much less as compared to any other city.
  
  
•  Mexico is very close to USA and Canada and as a result of this; the transportation cost of finished goods from this city is much lesser as compared to any other city.

The major benefits of a good supply chain management are given below:-

•  Reduce Cost effects: Supply chain management helps in improving the inventory management system of a company. It eliminates the damage of resources by managing the allocation of storage space of finished goods. It improves the system of the organization, thus helping them to understand the needs of the customers. It also helps the organization to strengthen their relationships with vendors and distributors.
  
  
•  Raise Outputs: Since with the help of proper supply chain management, the communication of an organization with its vendors and the transportation and shipping companies are improved, it helps in a good bi-directional information flow. The centralized distribution strategy of supply chain management helps in giving accurate results to the end users.
  
  
•  Raises the profit level of the business: Another important benefit of a good Supply chain management is, raising the profit level of your business. New innovative technologies help in bringing out new ways of success for the organization. A higher visibility and improved collaboration helps in giving a better output for the company.
  
  
•  Reduces time delay: Any lacking in the supply chain management often leads to a poor relationship with stake holders. This results in loss of business for the organization. With a proper supply chain management the time delay is reduced considerably which in turn helps the company to make good profits.
  
  

However, in order to enjoy all the benefits of a good supply chain management, it is very important for you to hire the services of reputed supply chain management companies. A good company provides services that facilitate the client’s strategic sourcing lifecycle. This also encompasses the complete range of services that are required to facilitate low cost country sourcing. They offer very pragmatic and innovative end to end sourcing and consulting solutions to the organizations. They help the organizations to manage their procurement activities well. This helps in an increased profitability of the organization.

The various services provided by a good Supply chain management companies include:

•  Strategic Sourcing Solutions
•  Vendor development services
•  Supplier Audits
•  Improvement and Inspection
•  Creating Global Supplier Database
•  Setting up Virtual Purchasing office
•  Providing Market intelligence reports
  
  

With the help of the above mentioned services, a good supply chain management company can help clients in achieving the desired result and when you hire one, always look for all these factors.