Supply Chain Management on the Profitability of Manufacturing Firms

Over the years, there has been increasing emphasis on supply chain management as an Avenue through which firms can achieve competitive advantage. Supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters, warehouses, retailers, and customers themselves. Within each organization, such as manufacturers, the supply chain includes all functions involved in receiving and filling a customer request. These functions include, but are not limited to, new product development, marketing, operations, distribution, finance, and customer service. Firms are beginning to align their Supply chain component since the effect an optimized Supply Chain has on the performance of firms cannot be underemphasised. Supply chain management is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain organizations to develop and run supply chains in the most efficient ways possible.