Supply Chain Management
Efficient supply chains are chains that utilize strategies aimed at creating the highest cost efficiency. For these numbers to be reached, any activity that does not add to the finished product should be eliminated, scale economies should be pursued, and techniques should be researched and deployed to ensure the best capacity utilization in production and distribution. An information channel should also be established to ensure the most efficient, accurate, and cost effective processes and to eliminate any wasteful procedures. Suppose Burgers Inc. instituted an information channel into their supply process. Upon research, it is discovered that some of their inventory, say for example their milkshake mix, traveled through several unnecessary stages on it way to the retail store. This information is relayed to the main office of the company, where upper management makes the decision to eliminate these steps from the supply chain process. With just this simple step, the company cuts unnecessary losses, thus making their supply chain more efficient.
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