State the objectives of Supply Chain Management

Supply chain management is a set of approaches utilized to efficiently integrate
suppliers, manufactures, warehouses and stores, so that merchandise is produce and
distributed at the right quantities, to the right locations, and at the right time, in order
to minimize system wide costs while satisfying service level requirements.

Objective of Supply Chain Management:

(i) Supply chain Management takes into consideration every facility that has an impact
on cost and plays a role in making the product conform to customer requirements:
from supplier and manufacturing facilities through warehouses and distribution
centers to retailers and stores.

(ii) The supply chain management is to be efficient and cost –effective across the entire
system; total system wide costs from transportation and distribution to inventories of
raw materials, work – in-process and finished goods are to be minimized.

(iii) Finally, supply chain management revolves around efficient integration of suppliers,
manufacturers, warehouses and stores; it encompasses the firm‘s activities at many
levels, from the strategic level through the tactical to the operational level.