The importance of supply chain decisions

1. The effective flow of goods and information

2. Replenishment of goods in a cost efficient manner. 

3. Sharing information with suppliers to reduce costs and increase the product availability. 

4. Close contact with customers to develop a better forecast. 

5. Real time customer service. 

6. Trade off between variety and inventory. 

7. Customized solutions to suppliers. 

The objective of a supply chain

• Creation of the value
• Every supply chain aspires to increase their value. This supply chain value is the difference between product worth and total supply chain cost. 
• Supply chain profitability or supply chain surplus. 

What is a supply chain?

A supply chain is a network of various stakeholders involved directly or indirectly in executing a customer order. 

The supply chain includes suppliers suppliers, suppliers, manufacturers, C&F agents, Wholesalers, stockists, distributors, agents, retailers, subretailers, brokers, peddlars and most Importantly customers. 

In a typical manufacturing organization, a supply chain functions include, new product development, operation, finance, distribution, and customer service.