Define supply-chain management. Why is it important?

Supply chain management includes transportation, conversion and delivery of raw materials and finished products so that the firm is able to supply its offerings to the customers at the right place and time.

The importance of supply chain management is as follow:

• Customer satisfaction: SCM ensures the quality of product so the customer could be delivered with full satisfaction.
• Reducing cost: SCM reduces the cost of product as the operational management is done properly.
• Increased sales and profitability: Since the customers are provided with the quality product so the demand of the product increases along with the profitability of the company.
• Coordination among several intermediaries: Supply chain management works by collaborating  several units which increases the coordination among them.