Supply and Production Essay Example | Topics and Well Written Essays - 500 words

Supply and Production - Essay Example One of the most important advantages is that the implementation of the supply chain management makes it possible to reduce the inventory days of supply by half and introduce the order-cycle time more efficiently. It means that the products are delivered much faster and the delays happen much rarely compared with the traditional competitive processes. Using supply chain management every party involved has an important role and the whole structure works as one unit - there is no division among departments. Finally, supply chain management is an effective cost reduction tool - there is not need to rent or build huge warehouses because the inventory is not getting piled up. One of the most obvious disadvantages of supply chain management is its unity and connectivity. For example, if one chain of the system fails the whole process will fail as well. If one of the suppliers is unable to meet the delivery time, the next unit will not be able to move forwards. Therefore, the company has to ensure that every level operates but still have alternative supplier in case one of the levels does not work out.