Can Supply Chain Management reduce cost of product or not?

write your view on this topic

if the cost of supply chain management is reduce than there is a need to spend more on transportation cost.

Supply chain management brings an innovation in Logistic industry. It is the management process for the collection of interlinked or interconnected channels, networks and services and products packages delivered to the end user in a supply chain. The main aim of this kind of management is to fulfill the demands and requirements of the customer and involved some stages as well like flow of raw materials, parts to be assembled, finished goods or products supplied to the customer. Apart from these, storage of raw materials, planning and scheduling of production, inventory, warehousing, customer service, return management, flow of funds and information and other logistic related activities are also managed under this system.

it reduce the product cost using 6 drivers of SCM effectively hense many company are moving towards direct selling to retailers and reducing intermediates.

Yes, we can reduce the cost by using supply chain management. Any business can increase its profits without increasing its sales. One can do this by reducing his supply costs. This generally includes the supplies themselves and the cost of shipping, storing and retrieving them.One can keep supply chain expenses down by managing every phase of the supply process. Break the chain down into its essential elements, like improving space utilization ,using multiple suppliers ,moving supplies faster ,streamlining your ordering process and various other elements ,one can see ways to make it work more efficiently.

we can also take an example of various company who have a strong supply chain. following is the data of various comapy which i found from google.
Rank

Company

Peer Opinion1
(200 voters)
(25%)

Gartner Opinion1
(35
voters)
(25%)

Three-
Year Weighted ROA2
(25%)

Inventory Turns3
(15%)

Three-
Year Weighted Revenue Growth4
(10%)

Composite Score5

1

Amazon

3,394

468

0.0%

8.7

21.7%

5.32

2

McDonald's

1,626

283

14.6%

157.3

-0.2%

5.23

3

Unilever

1,996

619

11.3%

6.7

-0.2%

5.15

4

Intel

1,064

481

12.1%

5.0

2.4%

4.09

5

Inditex

1,003

297

17.0%

3.8

8.8%

4.04

6

Cisco Systems

1,147

500

8.4%

12.6

1.5%

4.01

7

H&M

809

89

26.6%

3.7

12.8%

4.01

8

Samsung Electronics

1,568

330

10.5%

17.7

0.5%

3.91

9

Colgate-Palmolive

1,034

318

17.8%

5.0

0.6%

3.91

10

Nike

1,369

214

14.5%

4.1

10.7%

3.78

11

Coca-Cola

1,938

287

8.9%

5.4

-1.0%

3.49

12

Starbucks

1,215

174

13.0%

6.8

11.6%

3.48

13

Walmart

1,794

259

8.4%

7.8

2.5%

3.39

14

3M

1,161

150

14.9%

4.2

2.7%

3.09

15

PepsiCo

890

330

8.9%

8.3

0.3%

3.04

16

Seagate Technology

176

114

19.9%

10.8

3.9%

2.99

17

Nestlé

1,123

244

9.9%

5.1

2.0%

2.93

18

Lenovo Group

771

218

3.9%

12.8

18.9%

2.89

19

Qualcomm

218

50

15.5%

8.8

17.8%

2.85

20

Kimberly-Clark

819

243

10.5%

5.9

0.8%

2.76

21

Johnson & Johnson

1,192

139

11.1%

2.8

4.6%

2.73

22

L'Oréal

749

118

12.5%

2.9

2.9%

2.41

23

Cummins

148

149

11.5%

5.2

4.7%

2.16

24

Toyota Motor

1,322

23

3.6%

10.6

13.4%

2.16

25

Home Depot

268

44

14.1%

4.6

5.6%

2.11

yes ,supply chain management can helps us to reduce our product cost as well as to improve our profit...
by reducing various unnecessary intermediaries from our supply chain we can reduce or cost as well as time..as a result we can take more profit from sales of that product.

Yes,supply chain management helps in reducing cost of product as if our supply chain management is well prepared and well maintained if we are able to reduce unnecessary intermediaries and we will surely be able to reduce our cost ultimately we will be benefited and intern can reduce the price of products to benefit our customers.

The key to lower supply chain costs is holding less inventory. Buying more transportation lets you reduce inventory safely...!!!

Any business can increase profits without increasing sales. We can easily do this by reducing your supply costs. This can include the supplies themselves and the cost of shipping, storing and retrieving them. This is known as the supply chain. We can keep supply chain expenses down by managing every phase of the supply process. Break the chain down into its essential elements, and we can see ways to make it work more efficiently.

Yes, this generally includes the supplies themselves and the cost of shipping, storing and retrieving them.One can keep supply chain expenses down by managing every phase of the supply process.
Your business can increase profits without increasing sales. You do this by reducing your supply costs. This can include the supplies themselves and the cost of shipping, storing and retrieving them. This is known as the supply chain. You can keep supply chain expenses down by managing every phase of the supply process. Break the chain down into its essential elements, and you can see ways to make it work more efficiently.
Improve Space Utilization
It costs you money to keep supplies and inventory in a warehouse. If you conduct an analysis of how well you are using your storage space, you may find that you are paying for too much space. You may also be wasting money paying personnel to search for stored items. A more efficient storage strategy could reduce the amount of space you use and the amount of time it takes to find and pull items. This could result in reduced rent and payroll costs.
Use Multiple Suppliers
If you only use one supplier, you are eliminating competition for your orders. Find several suppliers who can compete on price, and use several of them at all times so you can avoid costly delays in receiving products. If one supplier is out, another may have the items. Using multiple suppliers protects you from spending money for less-than-satisfactory service.
Move Supplies Faster
If you can find ways to expedite shipments from suppliers, you can order closer to the time you need the supplies. Ordering far in advance can incur warehouse costs, because you have to store them so that they'll be available, and products are more likely to get lost or damaged. In addition, examine whether you can shorten the time it takes you to transport supplies from where you receive them to where you need them. Transportation from the supplier and within your company can add days or weeks to your supply chain and increase costs.
Review Customer Demand Patterns Frequently
You may have established your supply needs based on a pattern of demand that is outdated. It can be cost-effective to evaluate customer-demand patterns frequently to see if your seasonal and even monthly assumptions hold up. Adjust your supply ordering based on your most recent evaluation, and you will be ordering in a way that's more closely tied to what you really need to have on hand. You can still keep some safety stock in case your assumptions are wrong, but there is no need to stock up for demand that never materializes.
Streamline Your Ordering Process
Part of your supply chain costs come from your ordering system. If you have multiple people filling out requisitions, using multiple software or even paper checklists, you could be over-ordering. In addition, if there's no approval process and individuals have the power to order supplies whenever they want, you could be ordering things you don't need. Examine your ordering process to see if it is causing waste.

Yes, supply chain reduce the cost of product.Supply chain management can be defined as an integrated approach to managing supply and distribution networks. In concept, it is the process of looking at the flow of materials involved in producing a particular product from their original raw material source, through the production process, and on downstream to the ultimate consumer. It can therefore include multiple tiers of suppliers and their suppliers and multiple layers of customers and their customers. Supply chains are simply the networks, or chains, of suppliers, producers, and customers involved in producing and marketing particular products.

The objectives of supply chain management include: management of the supply chain as a single entity, obtain seamless flows of materials, money and information throughout, reduce costs, reduce cycle time, reduce risk and uncertainty, and improve customer satisfaction

Surely supply chain can reduce cost because it handles over all working of any organisation that is from raw material to its processing to delivering it to the final customer. it includes lead time, cycle time, delivery time therefore it can reduce the reduce the cost.

Yes, it reduces the cost of product. Supply chain is actually an integrated approach to managing supply and distribution networks. Expenses can be kept down by managing every phase of the supply process. A heavy amount is needed to maintain supplies and inventory in a warehouse. You may also be wasting money paying personnel to search for stored items. A more efficient storage strategy could reduce the amount of space you use and the amount of time it takes to find and pull items. This could result in reduced rent and payroll costs. Supply chain management has become important like never before, with the revolution in Information Technology and breakdown of geographical barrires. A combination of meticulous analysis, sensible strategy and effective implementation can enable a company to manage its profitability.