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It includes everything from productdevelopment and strategic decision-making to information systems and new technologies. Better customer satisfaction : An optimized supply chain allows businesses to make sure products are available when and where people want them—which can improve relationships and loyalty with customers.
SCM encompasses the integrated planning and execution of processes required to optimize the flow of materials, information and financial capital in the areas that broadly include demand planning, sourcing, production, inventory management and storage, transportation — or logistics — and return for excess or defective products.
A high inventory turnover ratio allows ecommerce businesses to free up capital that would otherwise be tied up in inventory. This capital can then be reinvested in areas such as marketing, productdevelopment, or enhancing the customer experience. Optimized turnover ratio enhances supplier relationships and negotiation leverage.
Business process management examples BPM can help improve overall business operations by optimizing various business processes. Automating specific tasks such as order processing, picking, packing and shipping reduces cycle times and improves order accuracy.
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