Importance of Supply Chain Management

                                        
Supply chain management (SCM) is an important part of every business. It consists of all the people, businesses, and processes from manufacturers, warehouses, suppliers, and the shipping method. 
 
With the emergence of competition, efficient supply chain management can give an edge that any business needs. It can improve the efficiency of warehouses, factories, and delivery, and drive profits to a business. 


REDUCE General OPERATING COSTS
 
This is achieved by reducing purchasing and production costs. 
 
Businesses usually prefer quick distributions of products to avoid expensive inventory. A well-coordinated supply chain delivers products to plants to reduce the costs that may occur due to delays or production shutdowns. 
 
For example, XIMIVOGUE buys products directly from its sources, eliminating the costs of having third parties buy products for it. 
 
In this way, XIMIVOGUE maximizes its ROI and the cost involved for each consumer places the products on the shelves more quickly and adds to its competitive advantage. 
 
ENHANCE CUSTOMER SERVICES
 
01 Timely delivery of products
 
Customers look forward to receiving the right quantity and quality of products to be delivered on time. 
 
A reliable supply chain like XIMIVOGUE’s ensures customers get their products in the promised time range, helping avoid any bottlenecks. 
 
02 Prompt after-sales service
 
After-sales services are one of the significant aspects of any business. A right supply chain ensures that customers have the service they want. 
 
Supply chain management let customers track their orders. This in turn will help them fix the problems that occur with the products quickly. 


REDUCE INVENTORY AND OVERHEAD COSTS 
 
A well-ordered supply chain can cut the maintenance costs of inventory, therefore reducing overhead costs related to storage and security. So, it is important to monitor the optimal inventory level. 
 
With accurate demand predictions, businesses can reduce slow-moving inventory costs to make room for revenue-producing inventory. 
 
XIMIVOGUE reduces these costs by optimizing its 50000 sqm warehouse layout to improve productivity.
 
VARIED SUPPLIER BASE
 
It is common for a business to be dependent on a specific supplier for a specific product category. However, this kind of approach can negatively affect product distribution. 
 
XIMIVOGUE has taken a varied route. It cooperates with over 10000 reliable suppliers, avoiding the shortage of certain products in production. 


XIMIVOGUE 50000sqm warehouse
 
IMPROVE CASH FLOW 
 
Running an efficient supply chain is based on good supplier relationships, strict product quality, and stock control. 
 
For example, XIMIVOGUE chooses reliable partners and accurately predicts and responds to demand changes to improve its cash flow. With a large supplier base and warehouse area, it decreases fixed assets costs and leads to great profit for its customers. 
 
EMPHASIS ON VISIBILITY AND DATA ANALYTICS
 
Information flow is an important challenge for businesses. Software tools like ERP can help to effectively manage stock levels, distribution channels, and business performance. 
 
XIMIVOGUE’s ERP system enables customers to share information seamlessly, providing a comprehensive view of the supply chain from end to end.