The competition isn’t between a company and another company but between supply chains, today in businesses. A supply chain is a system of suppliers’ factories, distribution centers, retailers, and warehouses. That is where materials are acquired, altered, 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 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. All these parties have their own objectives and resources.
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 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 should be on quick responses and high-quality services will be achieved with cooperation and dynamic formation of supply chains.
In increasing the responsiveness to the changing business, supply chain management in Mexico has become a powerful technique. Additionally, it 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 that synchronizes the flow of physical goods and associated information from the production line of low-level component suppliers to end consumers. This results in the early provision of notices of demand fluctuations and synchronizing the processes of the business.
Requirement and the significance of supply chain management 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 guarantee that there are coordination and visibility through the distribution chain.