The role of supply chain management in enterprises

Samsung's failure of the Galaxy Note 7 product due to supply chain management problems, which is a mass fire incident in the years 2016-2017 consumed a lot of paper and ink in public opinion, causing Samsung to suffer the consequences heavily.

Samsung has cost up to about 5 billion USD to recall all Galaxy Note 7 products and deal with the related consequences. The stock price fell for a long time, and it took a long time for them to gradually regain the trust of customers.

Most professional reviews say that the reason from supply chain management problems. The Korean "tech giant" made a big mistake in supplier management and quality control of input materials (poor quality battery supplies).

Looking at Samsung's lesson, we can see the role of supply chain management. So what is supply chain management? And how depends the success - failure of a business through effective supply chain management? Find out in this article together Viindoo.

>>>> See More: Supply chain management software

A supply chain is not limited but may include the following factor:

• Organization: Supplier, Manufacturer, Forwarder, Distributor, Retailer, etc.
• Activities: Product research and development, supply planning and strategy/production planning, sourcing and procurement, production, inventory management, transportation & logistics, management finance, sales, marketing, and customer service, etc.
• Information system: management software, Database, information technology system, etc.
• Resources: human resources, capital, assets, etc. 

Because of the comprehensive universality of a business, Supply Chain is increasingly considered the soul of every business model, big or small, simple or complex, whether the product is a product physical or service.

From the definition of Supply Chain Management, we can see the two most important goals that a Supply Chain aims at improving customer experience and saving costs. These are also two factors that directly affect the profitability of businesses.

Therefore, market competition is no longer a battle between individuals or individual businesses. Now, it is a battle between Supply Chains, competing in quality, quantity, and speed to attract as many customers and maximize revenue.

Winning goes to organizations that can better structure, coordinate, and manage relationships with their partners, resources, and customers.

>>>> See More: What is supply chain management?

A good example of The importance of supply chain management which built an effective and successful supply chain must be mentioned Amazon.

It is no coincidence that the concept of the "Amazon Effect" was formed and became familiar to retail businesses in particular and supply chain managers in general when it comes to the impacts of the digital marketplace on traditional business models.

The most impressive thing that Amazon leaves in the hearts of their customers is the breakthrough speed of order response and delivery, 24/7 response.

However, behind a customer's purchase click is a huge machine: a mobile app platform with more than 156 million users (Statista, 2019), more than 4000 products sold every minute (Amazon, 2019), more than 2.5 million sellers (Marketplacepulse, 2019) and more than 800 warehouses with a total area of ​​​​20 million m2 around the world.