Supply Chain Management is an integral part of every business. The primary role of supply chain management is to improve customer service standards and reduce the overall operational costs.

With the dawn of the digital era, supply chain management processes have undergone a drastic change; processes have evolved from manual and labor-intensive to a more automated system-based approach. This transformation has helped businesses grow exponentially. Just a decade back, we could never imagine a one-day delivery format, but with online same-day delivery is made possible. Automated techniques like Logistics software and Warehouse management systems are optimizing businesses and helping them address the customer demands efficiently.


Irrespective of the size of the business, automated Supply Chain Management can be a great boon to business. These are some of the benefits of having an efficient SCM.

  • Improves Customer Service

Today with commercialization, customer’s are spoilt for choices, they except the right product at the right time. Any mistake or delay in delivery of orders can affect customer relationship. Automated supply chain management systems help in streamlining the process systematically, so that customer satisfaction and brand reputation are optimized.

  • Minimizes Cost

The most significant role of Supply chain is inventory management. For plants that acquire raw-materials from different vendors to make their products, it is important to keep a track on the available inventory. If the raw-materials get existed, then it will directly impact production. With the help of Supply chain management, companies can view the detailed status of their inventory and order goods on time, to avoid downtime.

  • Increases Profitability

The operational cost of automated supply chain management systems is quite low, compared to the benefits it provides. It helps companies take calculative decisions that can increase sales and win customer trust. For example, India consumes 2 millions packets of tea every year, so by reducing just Rupees 2 in their supply chain process, the entire tea-producing industry can save a considerable amount. An efficient supply chain process can improve the overall economy of a country.

  • Reduces Asset Cost

A well-mapped supply chain process can eliminate a lot of components like a warehouse, vehicles, labor, etc. For example, a company might choose to deliver the orders from the manufacturer’s plant and not from his physical warehouse. These small changes in planning can save a huge asset maintenance cost.

  • Supports the Healthcare Sector

In times of an epidemic, the role of supply chain management is very critical. During any medical emergency, supply chain ensures that the medicines, reach the affected region in the most limited time. Provisions like helicopters, mobile hospitals are made to restore the situation immediately. All local hospitals also depend on the supply chain for their medicines and medical equipment.

  • Restores Crisis Situations

During any climatic hazards like earthquake or floods, the supply chain plays a significant role. The delivery of food packets, clothes, medicines, and other necessary items is transported through various modes on a continuous basis. Any lapse in the supply chain planning at this stage can be a risk to human life.

  • Improves the Economy

China is the biggest example of an efficiently managed supply chain. It sells its goods to the world. From a pen drive to a smartphone, they produce everything and sell it to other countries. They handle delivery at a very optimum cost, and thus their profits are enormous. Another country that leads the chart is the United States of America; here, the cost of supply chain management is only 20% of the product value. This directly impacts earning and makes their economy stronger.

Last Word:

Logistics management is the core of any industry. It is indeed the engine of your entire system; a well-managed supply chain can help your business grow 10-20 times. Adapt the automated techniques and become a leader in your industry.