Applying Supply Chain to Manage a Business Network

Market leadership can only be achieved by managing the network effectively as well as managing internal processes. Supply Chain Management can be divided into three main flows; Product flow, Finance flow and Information flow. In a successful supply chain network, these three vital categories flow simultaneously among the supply chain partners. Among the critical factors in determining the success of managing the network are collective strategy development.

Managing the entire supply chain requires companies to view their supply chain as a single entity. Strategic decision making and efficient management is essential in determining the success of the collaborative effort between the suppliers. Collective strategy is developed through mutual understanding and common objectives. Setting a clear goal post for the suppliers will help them in steering towards the same direction regardless of any setback they suffer along the way. Reaction to any disturbances caused by outside factors must also be dealt with collectively by suppliers as a group. The collaboration is also much stronger and enables them to compete effectively in either the local or global market.