Study of innovative supply chain of the future

Abstract

The supply chain management deals with management of logistics of the material required for production, work-in-progress goods and finished products. The goal of setting up efficient supply chain, making useful products and overall business is profitability. Profits can be understood as price that is paid by the customer minus the cost that is incurred for producing it. The objective of the supply chain is to achieve the surplus which can be used to generate the overall value for the business. Managing the flow of information, cost control, quality improvement, material and product replenishment according to the demand with shorter lead times, shortening the time to order, optimizing the inventory levels to improve the efficiency which can reduce transportation and logistics costs etc. also fall under the purview of the supply chain management.