October 20, 2020

How Does a Supply Chain Affect Organizations?

supply chain is basically a chain between an organization and its various suppliers in order to make and deliver a certain product or service to customers. The main entities involved in this chain are manufacturers, distributors, warehouses, transporters, retail outlets, and retailers. The suppliers may be small, medium, large, or non-specialized ones. They have varying terms of agreement. All these are essential as they help organizations make efficient utilization of their resources and increase their profit margin.

supply chain

One of the main reasons behind why businesses rely upon such a chain of companies to deliver their products is the fact that this helps them save a lot of money. For example, if a retailer makes a large order and the manufacturer cannot supply it because of some reason then the organization will have to make do with a smaller one. In such a case, the business will have to pay a substantial amount for the product that is not available. Similarly, when a manufacturer supplies products for an organization then he may not have the capacity to make the required inventory. Thus, he can reduce the quantity he provides. This way he can ensure a higher profit margin and thus can pass on the savings to the clients. Hence, a supply chain helps both the organizations as well as their customers save a lot of money.

However, there are several companies and industries that do not have a supply chain at all. There may be no manufacturer who supplies any of the required products to the organizations. The companies who do not rely on supply chains could find themselves in a situation where they have to buy a huge number of raw materials in order to make a small batch of products. This would entail a lot of wastage of resources, which could lead to a loss of revenue for the organization.

One of the areas where organizations have to worry a lot is the information technology sector. The information technology industry is known to have a big impact on the economy of a country. This industry involves many processes and activities. The various information technologies such as networking, telecommunications, computer science, information systems, software, communication, hardware, software development, and hardware manufacturing are required in order to make the business of information technology successful. The companies who are engaged in such processes also provide many services to the organizations. These services include designing, marketing, sales, development, and customer support. They also provide training in such fields as IT management, software engineering, and computer technology, software application design, and development, programming, web development, software marketing, etc.

With the introduction of Information Technology there has been a rise in demand for companies engaged in Information Technology. This has led to the growth of the IT industry and increased the demand for skilled professionals, programmers, IT managers, developers, designers, IT managers and technicians, system engineers, programmers and testers, software engineers and IT support specialists. Since most organizations use Information Technology to run their business, it has been necessary for them to hire professionals who are skilled in Information Technology.

India has proved to be the best destination for professionals engaged in Information Technology. Most of the Indian organizations are providing their IT professionals to various parts of the world. The Indian professionals are well equipped with the skills and know-how to manage large projects and organizations.

Leave a Reply

Your email address will not be published. Required fields are marked *