A vital aspect of any business is supply management. The supply chain department is responsible for ensuring that the goods get to the consumer within the timeframe promised by the business after the sales and marketing teams have convinced thousands of customers to place orders. The supply chain department is responsible for sourcing the necessary parts to manufacture the product from the right companies. The department that succeeds in this will make the business a lot more money.

A good supply management can reduce the production costs
The cost of producing goods for a business will drop dramatically if it has an effective management team. Effective management will be able negotiate with distributors and suppliers to either supply the parts required in the manufacturing of the goods or transport the product to the end consumer. The final price paid by the consumer for the product will be lower than any other products if the whole business can source parts from suppliers at discounted or reduced prices. This will help increase the company's competitive edge and allow it to capture a larger market share. If the business wants to succeed and make lots of money, this is essential.

Improved delivery times with good supply management
Customers are more annoyed by having to wait longer for their products than they should. It would be a worthy competitor to have to wait for so long and then receive a defective product. Many people are angry at the wait. A good supply management system would reduce the time it takes for the consumer to receive the goods. If a company promises its customers that they will receive their goods within 24 hours, and then delivers on that promise, it is likely that these customers will be loyal to the company.