What is Supply Chain Management

If you think about it, the manner in which the global economy is currently structured is mind bogglingly complex. A shoe that you might buy in America would have been manufactured in China, and the raw materials that were needed to make the shoe might have been sourced all the way from Brazil. That means that your shoe will have traversed the globe before reaching the store that you purchased it at, and while this might seem inefficient the reality is that it actually helps make things cheaper in some way, shape or form.

A big part of the reason why that is the case has to do with the fact that globalization enables businesses to cross borders and get the best of all possible worlds. Raw materials for shoes are cheapest in Brazil, the labor to make the shoes is cheapest in China, and the buyers who are willing to pay the most for these shoes regardless of how much they cost to make are in America. Global shipping lanes along with Northwest haulage companies help make the expenses of such transportation so meager that companies are able to extract tremendous value from whatever it is that they were trying to do.

This is where supply chain management comes into play. The supply chain is basically the process of transporting raw materials and goods, and the management aspect involves making sure that everything goes over without a hitch. It’s one of the most difficult jobs in the world and also the most thankless, since suffice it to say that you would not be able to buy so much for so little at any given point in time without them.