In order to gain competitive advantage and increase customer value in the marketplace, supply chain management activities are carried out in a business. Supply chains are developed by suppliers to cover all aspects of the product that is production, information system, product development, etc. It is basically the network of various activities wherein the raw material is purchased, transformed into goods and services and eventually delivered to the customers.
Nowadays, distribution channels and raw material ownerships are being outsourced by business enterprises as they are becoming more flexible and focusing on their core competencies. Therefore, their control over logistic operations is reduced which leads to the creation of more supply chain partners. The aim of supply chain management is to improve collaboration and trust among its partners. Developing supply chains in a business can be highly enterprising as it creates a greater competitive advantage, reduces the gap in time lead, creates greater value for customers and ensures customer satisfaction.
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