Relationship between areas of business function and its supply chain
Achieving the objectives of the business
Business objectives are the individual targets that a business aims to achieve within a certain period of time. For a business to achieve these objectives, an effective supply chain is essential. The supply chain must work effectively with marketing, sales and finance to ensure a smoothly operating business that can achieve its objectives in areas such as sales targets, profit, quality, delivery and customer satisfaction.
How the supply chain works with marketing
The supply chain relies on the marketing department to attract interest to the brand and products. This encourages customers to purchase goods from the business and ensures that the supply chain keeps operating effectively, and that the business is able to keep moving stock.
How the supply chain works with sales
The sales department works very closely with the supply chain. The sales team helps with organising the final stage of the sales process by helping with the distribution of products to the wholesale, retail and the end consumer. The sales department also ensures that any difficulties throughout the process are dealt with, and is often the first point of contact for a customer. Without the sales team being effective in their role, the supply chain would struggle to be a success.
How the supply chain works with finance
The finance department ensures the supply chain is provided with enough money to operate effectively. Finance will also ensure that the business purchases supplies at the best price, and that all suppliers and distribution partners receive payment.