Question

1. discuss the advantages and disadvantages of two supply chain structures

Answer 1

Meaning of supply chain structure:

The supply chain structure is a network between a company and its suppliers to produce and distribute a particular product or service and steps and activities involves to get a product or service to the customer that is transporting raw materials into final products , transporting the products and distributing and delivering them to the end-user. These steps involved in the supply chain include producers, vendors,warehouses, transportation, distribution centres ,retailers lastly final good reached to customers.

The advantages of two supply chain structures:

1.The first and foremost advantage of supply chain structure is that it helps the company in achieving cost efficiency because of that it reduce the various costs like transportation costs, warehousing, packaging costs, reduces wastage by timely and prompt delivery of goods so ultimately it helps the company in achieving cost efficiency and increases the profitability of the company.

2. Due to supply chain structure helps to easily identify the problem area or departments and hence can take action against the concerned people for immediately clear it.

3. Supply chain structure helps to get customers satisfaction and delight and it make sure that goods reach customer on time that results in customer delight because nowadays customers do not care about spending more money but they get quality service from the company

Disadvantages of two supply chain structures:

The main disadvantage of supply chain structure is there is no proper coordination between all the departments of the company so it leads to improper time of delivery or late/delay delivery of the product to customer.

Interdepartmental disunity creates there will be numerous challenges to the company.

In conclusion supply chain structures gives more benefits that is customer satisfiction, proper time delivery and cost efficiency to company but it leads some disadvantages also lack of coordination between department, inefficiency of the worker affects the customers satisfaction.