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. This is where raw materials are acquired, transformed, produced and also delivered to customers. 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 at the series should collaborate with their business partners to have the ability to optimize profits and so as to satisfy the requirements of consumers. Managing the collaboration in a distribution chain is a difficult task due to the involvement of many parties. Each of the parties has their own objectives and resources.
There is no single authority over all the chain members when it comes to chain supply. Cooperation is not and created through negotiation central management and control. The procedure which occurs in phases requires cooperation in decision-making and the operation of tasks the operational areas, 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 quick responses and services will be achieved with collaboration and lively 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 business to survive and grow, it should enhance its market responsiveness and become cost competitive. Supply chain management is a method of breaking down the linked set of values creating activities from raw materials to the end products that reach the consumers.
A supply chain will link manufacturers, retailers, customers and suppliers in the chain. This aids in delivering and creating goods as a single company of abilities to bring together skills and resources. 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 synchronizing the business’ procedures and ends in the supply of notices of requirement fluctuations.
Supply chain management’s significance and need increases in future. This is because clients will demand delivery of orders in a faster way. 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 ensure that there are greater visibility and coordination throughout the supply chain.