Advantages and Disadvantages of Supply Chain Management



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Niraj Kumbhat, Manager, India
"What are key advantages and disadvantages of SCM?"
 
  Advantages of SCM
Shubhada, India
"There are many advantages of SCM.
1. Minimum costs with better material handling
2. Improved Customer satisfaction with the right quality product & right time delivery of product in his hand
3. SCM improves the supplier & manufacturer relationship which leads to business growth."
 
  Advantages of SCM
Caillaud, France
"I agree with Shubhada, and his third point. The main advantage is that it helps participants to see the whole chain and therefore to be better prepared to take appropriate decisions. This systemic approach changes the way people see the performance, and this changes their thinking and their behavior. Waste is reduced but it takes a big change in management maturity. This is the corner stone."
 
  Advantages Supply Chain Management
Manda, Malawi
"I agree with Shubhada, and his second point. We are in business for profit which comes thru the customer. The customer is king and needs satisfaction at a minimum cost and for the lowest price. This can be best achieved through Supply Chain Management."
 
  Disadvantages of SCM
van Hooijdonk, The Netherlands
"Hard to say, but not impossible. Every upside has a downside, also SCM.
Rubbish in = rubbish out. If an organization is not able to balance own supply with demand, it will certainly not be able to balance the supply and demand of their whole supply chain. The disadvantage is that profitable SCM is hard to implement in immature/informal organizations.
First become a formal business, before you integrate your supply chain."
 
  Disadvantage of SCM
Sophia, Malaysia
"Absolutely agree with Mr. van Hooijdonk, SCM can fail if both parties are not willing to share their insights, information throughout, especially conservative companies.
The first and foremost criterion for SCM is the willingness to share information, risks, and gains."
 
  Disadvantage of SCM
Priya Sinha, India
"I agree Transparency is highly required in any SCM network. If in an entire SCM chain even one single node is hiding information, this will effect the profit and gains of the entire network which may finally collapse.
So transparency is must in SCM."
 


   
 

   

 
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