IMPACT OF SUPPLY CHAIN MANAGEMENT IN ENHANCING FINANCIAL PERFORMANCE

Most of the companies give more importance to their core business.Many of them will not give much importance to the challenges associated with logistics.They fail to recognize the impact of supply chain on operating expenses,revenue growth and capital utilization. By focusing on supply chain we can reduce the cost of goods,operational expenses,days in inventory etc.First we have to identify the logistic function that support the supply chain and then focus on the area which enhance the revenue growth,capital utilization and reduce the operating expenses.Transportation is considered as the largest element of logistics cost.It has a major impact on the revenue growth.Goods with short-term life cycle and perishable goods rely on transportation to maintain their value. Transportation-related technology generates multiple financial benefits. Improving the visibility of purchase order information, transit shipment and delivery times reduces labor costs at the distribution center. Inventory,warehousing, manufacturing , distribution, etc. associated with  capital investment are dependent on effective management of transportation. Enterprises should also focus on supply chain management as a means of increasing customer loyalty and operating performance.Improving supply chain management will improve company's productivity and operational efficiencies.It helps the company to create a better competitive advantage in market place.