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1.1 Explain the Importance of Effective Supply Chain Management in Achieving Your Organizational Objectives.

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1.1 Explain the importance of effective supply chain management in achieving your organizational objectives.

Supply Chain Management as defined as "Maximising added value and reducing total cost across the entire trading process through focusing on speed and certainty of response to the market”.

Competitive Edge through Core Competencies
Today's business climate has rapidly changed and has become more competitive as ever in nature. Businesses now not only need to operate at a lower cost to compete, it must also develop its own core competencies to distinguish itself from competitors and stand out in the market. In creating the competitive edge, companies need to divert its resources to focus on what they do best and outsource the process and task that is not important to the overall objective of the company. Supply chain management has allowed company to rethink their entire operation and restructure it so that they can focus on its core competencies and outsource processes that are not within the core competencies of the company. Due to the current competitive market, it is the only way for a company to survive. The strategy on applying SCM will not only impact their market positioning but also strategic decision on choosing the right partners, resources and manpower. By focusing on core competencies also will allow the company to create niches and specialization of core areas. As stated in the Blue Ocean Strategy outlined by Chan Kim, in order to create a niche for competitive advantage, companies must look at the big picture of the whole process, and figuring out which process can be reduce, eliminate, raise and create.
Value Advantage
SCM has allowed business nowadays to not just have productivity advantage alone but also on value advantage. 'Productivity advantage gives a lower cost profile and the value advantage gives the product or offering a

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