The competition isn’t between a business and another company but involving supply chains in business today. A supply chain is a network of factories, suppliers, distribution centers, retailers, 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 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 created through discussion and not control and management that is central. 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.
Supply chain management in Mexico has become a powerful technique in increasing the responsiveness to the changing business conditions. It also enhances these businesses’ competitiveness. Today there is intense competition and the global 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 way of breaking the set of worth producing activities from raw materials down to the consumers of the end product.
A distribution chain will link producers, retailers, customers and providers in the distribution. 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 that synchronizes the flow of physical goods and associated information from the production line of low-level component suppliers to end consumers. This synchronizes the procedures of the company 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 be demanding delivery of orders in a way that is fast. Manufacturers will need to have greater knowledge of order requirements to be able to better plan its operations and processes. 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.