Why is supply managements position in the corporations organ

Why is supply management’s position in the corporation’s organization structure important?

Solution

The location on the organization structure of the supply management influences the department`s ability to function optimally and influences the decision making process involved the effective procurement.

The imporance of supply management is determinated by these factors:

The position of the supply management on organizations can vary, but as materials gained in importances becoming a larger proportion of the cost of goods sold, issues such as inflated inventories, poor quality, stock outs , death times , long lead provided a movement to capture control of materials

Supply chain management has grown to planing and management all the activities involved in forescasting, sourcing and procurement and logistics management activities