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MU insights | The importance of supply chain management

The importance of supply chain management

Regardless of your industry, the importance of supply chain management cannot be ignored. High-quality supply chain management can save your business a huge amount of time, effort, and waste. Strategic supply chain management can greatly improve efficiency and avoid wasting valuable resources like your capital and your staff’s time.

Supply chain management is a critical function of any modern business. When used properly, supply chain management can produce up to 40% in savings on your typical running costs.

Focusing on improving your procurement and supply chain management strategies can directly impact your company’s bottom line. Work with any business analyst or professional, and they will be clear that the importance of supply chain management should not be ignored.

When used correctly, this can utterly transform your business for the better.

The importance of supply chain management: what does it offer?

Investing in a proper B2B supply chain management process can make your business look forward to several key benefits. These benefits include:

Improved customer service

Having a better supply chain management standard can make it easier to interact with customers. Customers and partners want to know where the products they have ordered are. They want a better idea of where their shipment is, when it should arrive, and whether the right quality and quantity standards have been met.

By investing in supply chain management practices, this becomes much easier.

You can provide your customers with improved information and more up-to-date details on where their goods are. That is very important to pacifying upset clients and maintaining positive relationships. The more transparent you can be, the easier it is to keep your clients happy.

This results in fewer orders being cancelled, better reviews from your partners, and long-term partnerships likely to thrive and not fail.

With supply chain management, it is much easier to keep track of what customer queries have been dealt with. For example, suppose a customer contacts your business about a specific product. In that case, your team can reach out to your supply chain management facility to find the answer to the customer’s request.

This results in much easier communication, improved customer relations, and easier order fulfilment.

Reduce operating costs

Another significant benefit of a comprehensive procurement and supply chain management strategy is the ability to significantly reduce operating costs. Cash flow is one of the most common issues that can sink a business: not having enough capital to invest in the goods, materials, and supplies your business needs. Indeed, reducing your supply chain costs by around 5% can produce significant increases in your profits – and that 5% is a very attainable drop with the right people managing this part of your business.

Hiring a supply chain manager could help you to build a strategy that cuts operating costs. For example, you could become more efficient by ensuring that shipments are ordered ahead of demand rather than when they become in demand. This means that staff can work smarter, not harder, and make the most of the hours they are in the workplace.

This results in more work being done for less, cutting operating costs by ensuring staff get more done in a shorter time without crunching or compromising quality. Good, well-operated supply chain management policies can also reduce expenditure on shipments and deliveries, parcelling everything together so that you use fewer third-party services to get the same job done.

Improve your financial position

Another great benefit of a supply chain management policy is that it can make your financial status more consistent. Again, cash flow is a major problem for many businesses. You can vastly improve your financial position by enacting a proper supply chain management process.

For example, supply chain management means you can automate supply shipment orders. This means that you can purchase supplies to meet expected demand automatically. This avoids taking reckless gambles and buying too many goods at once.

This means that you could have lots of unsold stock or materials that you cannot use due to a lack of demand. Instead of anticipating demand, supply chain management practices allow for automation. This means that you only buy what your supply chain management system tells you you will need.

With automated ordering, you can keep the deliveries coming in to meet forecasted demand, too. This means only spending on your business needs, not what you anticipate.

Many businesses suffer from this problem – they invest too much of their income into supplies in anticipation of a demand that never comes.

A supply chain manager can help your business drastically reduce costs in key areas. For one, you can finish projects faster, leading to quicker invoicing and more products sold and goods delivered. A good supply chain manager can also reduce the cost of things like packaging and shipping.

Supply chain management’s easier cash flow and reduced operating costs are huge boons for any business. This puts your business in a better position to make new investments, hire new staff, and take ‘positive risks’ that were previously unaffordable.

Strengthen product quality

The other primary benefit of investing in supply chain management is that it can increase the quality of your products. You can easily communicate with your clientele to determine what they need and what they feel needs improvement; this information can be relayed to supply chain management so that the right goods and materials are ordered to meet standards.

Your clientele will appreciate working with a business capable of making changes to fit their requests. Since your supply chain management policies will ensure you always have what you need to work with ordered ahead of time, you never need to cut corners or make do.

By avoiding having to reduce quality products, you are likely to maintain positive relations with clients through the delivery of high-quality, excellent standard products that meet their needs.


As you can see, there are many benefits to having a supply chain management process in place. Your supply chain manager can do a lot to cut costs, improve efficiency, avoid wastage, strengthen customer relations, and maintain consistency in everything from product delivery to materials ordering. In short, your supply chain management process is vitally important to any business looking to modernise.

Without a strong supply chain management process, you will likely fall behind your competitors and risk incurring the wrath of your clients. Are you looking to partner with a specialist in supply chain management? Then contact the MU Group today. We operate with over 10,000 suppliers and cover over 200 markets across our 20+ years in the industry.

Our team provides diverse solutions to all manner of supply chain management issues. We can assist you in transforming your supply chain process through everything from procurement services to packaging design, product quality assessment, after-sales support, market research, and analysis.

Contact the MU Group today to discuss how we can help you revolutionise your supply chain management process in the long term.

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