In business today the competition is not between a company and another company but between supply chains. A supply chain is a system of retailers, suppliers, distribution facilities, factories, and warehouses. That is really where materials are acquired, transformed, produced and delivered to clients. A supply chain is a dynamic process and involves the constant flow of information, materials, and funds across the many functional areas within and among chain members. The members in the chain need to cooperate with their business partners in order to meet the needs of customers and to be able to maximize profits. Managing the collaboration in a supply chain is a very difficult task because of the involvement of many parties. The parties each have resources and their own goals.
There’s not any single authority over the chain members as soon as it comes to string distribution. Cooperation is not and created through negotiation central management and control. The procedure which occurs in stages requires cooperation in decision-making and the operation of organizational boundaries, tasks, and the different functional areas. This is to be certain that they’ll have the ability to manage doubts and issues arising. The focus ought to be on responses that are fast and services will likely be achieved with lively dynamic information and collaboration formation of supply chains.
In increasing the responsiveness to the changing industry to the business conditions, supply chain management in Mexico has come to be a highly effective technique. It also enhances these businesses’ competitiveness. Today there is competition and the economy is increasing. For a company to grow and survive, it should boost its market responsiveness and become cost competitive. Supply chain management is a way of breaking down the connected set of worth creating activities from raw materials to the end users who are consumers.
A distribution chain will link producers, retailers, customers and providers in the distribution. This helps in creating and delivering goods as a single virtual company of resources and skills. Supply chain management is a process which is related to flow of information from low-level component suppliers’ in the manufacturing line to end customers and synchronizes the flow of physical goods. This results in the early provision of notices of demand fluctuations and synchronizing the processes of the business.
The importance and need of supply chain management will increase in future. This is because clients will demand delivery of orders in a faster way. Producers will need to have greater knowledge of order requirements to be able to better plan its processes and operations. The entities will need to improve coordination among service providers and the consumers. This will guarantee that there are coordination and visibility through the distribution chain.