The competition isn’t between a company and another company but between supply chains, today in businesses. 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 series should cooperate with their business partners in order to meet the needs of customers and to be able to optimize 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 is no single authority over all the chain members when it comes to chain supply. Cooperation is made through negotiation and not central management and control. The process which takes place in different stages requires real-time cooperation in the operation and decision-making of the different functional areas, tasks, and organizational boundaries. This is to make sure that they will be able to deal with uncertainties and issues. 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 business, supply chain management in Mexico has become a powerful technique. It also enhances these businesses’ competitiveness. Today there is intense competition and the global economy is increasing. For a company to grow and survive, it eventually become price competitive and should boost its market responsiveness. 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 developing and delivering products as a single virtual organization of pooled resources and skills. Supply chain management is a process which transfers information from the manufacturing line of providers to end customers and synchronizes the flow of goods. This results in the early provision of notices of demand fluctuations and synchronizing the processes of the business.
Supply chain management’s significance and need increases in future. This is because clients will be demanding delivery of orders in a way that is fast. Producers will have to have an understanding of order requirements in order to plan processes and its operations. Additionally, the entities that are external need to increase coordination among the consumers, providers and service providers. This will guarantee that there are coordination and visibility through the distribution chain.