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Marketing 2018 19th Edition

Marketing 2018 (19th Edition)

Book Edition19th Edition
Author(s)Ferrell, Pride
PublisherCengage Learning
Chapter 14, End of Chapter , Discussion and Review Questions , Exercise 1
Page 452

Define supply-chain management. Why is it important?

Here is a tip:

Receiving raw materials and transporting finished goods form an integral part of supply chain management.


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.

Verified Answer

Supply chain management(SCM)  involves all the activities and parties required in the transformation of raw materials into finished products and its delivery to the end customer.


Supply chain management is important for the following reasons-

  • Customer satisfaction
  • Reducing cost
  • Increased sales and profitability
  • Coordination among several intermediaries.
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