Question

how might a distributor use inventory aggregation to serve multiple customers that sell the same product? Elaborate on your response, using the key concepts from supply chain management.

Answer 1

Supply chain management refers to a concept wherein it comprises of individuals, technology, activities, information and resources concerned with effective and efficient distribution of goods and services from supplier to consumers. Thus it involves coordination and co-operation from the concerned channel partners such as dealers, intermediaries, third-party service providers and customers.

Furthermore effective and efficient supply chain management ensures proficiencies across the organization and in fact facilitates to effectually co-ordinate and correlate among the individuals within the organization by sharing valuable information’s and competently administering the inventories which indeed helps in cost savings in the overall business operations.

Segmentation facilitates to segregate the supply chain process into separate distinctive streams which in fact helps the supply chain management to be effective, efficient and responsive thus it assists the supply chain process to effectually deal and resolve the wide-ranging and universal dilemma and crisis concerned with demand variability.

Thus by recognizing and acknowledging the steady and constant element of demand an effective and efficient supply chain segment can be initiated and set up to serve the concerned purpose and this indeed would facilitate the top management to focus on effectually administering the variable and complex environment persisting in the market.

However an effective and efficient cost-to-serve examination and evaluation would indeed facilitate to assess the profitability of a consumer relationship based on the supply chain resources consumed in serving that customer. Thus this would allow the supply chain segments to be characteristically defined with concerned precise features related with effectual inventory and shipping business policies and strategies.

Furthermore effective supply chain management has rapidly been enduring towards as one of the most crucial and significant competitive advantage for an organization which in fact can facilitate to set apart a business from its competitors and thus it would be more natural for an organization to expand the perception of supply chain management and use marketing and customer relationship management to ensure the effective and efficient utilization of the business process which indeed can facilitate cost effectiveness and efficiency in business operations.