Scm cloud computing advantages and disadvantages?

Answer 1

Advantages of Supply Chain Management

Cost Efficiency

The first and foremost advantage of supply chain management is that it helps the company in achieving cost efficiency because it can lower various costs like transportation costs, warehousing, packaging costs, reduces wastage by timely delivery of goods and so on which ultimately helps the company in achieving cost efficiency which in turn increases the profitability of the company.

Helpful in Identifying Problem Areas

In the absence of proper supply management company will find it hard to find problem areas as every department will blame other departments for failure but due to this management company can identify the problem areas in the company due to which company’s profitability and reputation are taking a hit. Hence, for example, suppose the production department is producing goods in time but due to the lackluster attitude of dispatch departments goods are not reaching on time to ultimate customers than supply chain management can easily identify the problem area which is the dispatch department and hence can take action against the concerned people.

Customer Delight

Since the primary task of this management is to make sure that goods reach customer on time it results in customer delight because nowadays people do not care about paying more money provided they get quality service from the company and supply chain management does exactly that resulting in costumer of the company getting satisfied and we all know that a satisfied customer will bring not only his or her business but acts as a marketing spokesperson of the company by bringing other customers to the company

Disadvantages of Supply Chain Management

Lack of Coordination between Various Departments

The biggest disadvantage of supply chain management is that it can work only if there is proper coordination between all the departments of the company and if departments are at loggerheads than this system will be a failure. Hence for example, if the marketing department does not inform the production department about the possible order than the production department will not be able to produce the desired order on time.

Complicated

Since it involves multiple departments sometimes it can be complicated and may hamper the normal working of the company besides workers as well as employees may feel insecure and demotivated because human beings by nature resist new things and to them the concept of supply chain management may appear very complicated resulting in them accepting this management half-heartedly.

Trained and Professional Staff

It requires professional and trained staff in order to properly execute supply chain management and in order to hire professional staff company will need to pay money which is an expensive proposition which is the reason why small companies seldom go for supply chain management as expenses of implementing this system outweighs its benefits.