Importance of Supply Chain Management tto Wholesale and Retail Industry

Subject: Management
Pages: 1
Words: 308
Reading time:
2 min
Study level: School

Supply chain management (SCM) includes every process that the raw material goes through to be considered a “finished good” that can be sold to the customer. The supply chain consists of multiple interconnected actions, and the result is a product that is ready to be used by the customer. While the wholesale/retail industry is focused on selling goods, many steps come before the final retail-consumer transaction. An item that is ready to be purchased is directly affected by the supply chain management.

SCM is an essential part of every business and its profit. The first crucial aspect of good supply chain management is the quality of the product, the efficiency of the production process, and the overall customer experience. According to Peng et al. (2019), effective SCM strategies positively affect organizational results. Having a short production time, high standards, and reasonable manufacturing practices is all related to SCM, which is why it is a vital component of a prosperous business.

A recent change that has been detrimental to the SCM policies is demand for shorter delivery time. A good SCM practice involves having efficient time management. Making the delivery time of raw materials shorter will lead to a faster producing process. It is also beneficial for the customer’s satisfaction. If the supply chain management can shorten the time of delivery to the customer to three days in comparison to other suppliers who can deliver it in 10 days, the buyer will be more inclined to choose the faster option.

Another change that has been occurring is the oversaturation of the market, which means there is a broader choice. Good chain supply management involves searching for more affordable raw materials. Finding cheaper raw materials can cut down the expenses. This is detrimental since the producer can keep the same quality and timing of production while spending less monetary resources.


Peng, X., Prybutok, V., & Xie, H. (2019). Integration of supply chain management and quality management within a quality focused organizational framework. International Journal of Production Research, 58(2), 448-466. Web.