Posted 22 Oct, 2019 | Finance
Why does an organisation need supply chain management consultants?Add Answer
- Increases customer satisfaction – Hiring trained supply chain management consultants increases the quality of goods manufactured by the business, increasing its customer retention capacity. Such management techniques also comprise of several after-sale follow up services, increasing customer satisfaction even further.
- Reduces the total cost of production – Supply chain consultants are responsible for analysing market conditions, allowing the business to predict aggregate demand subsequently. This helps a company to reduce its production and inventory costs, thus, increasing the total profits of entrepreneurs. Proper maintenance and storage of inventory reduces both procurement and transportation cost incurred by a business as well. Proper supply side management helps a business become stable.
- Increases average cash flow of a business – If proper supply chain management techniques are followed, optimal amount of inventory would be maintained by a business. This increases the cash flow of a company, as it is not stuck as an inventory product due to high turnover.