THE IMPACT OF SUPPLY CHAIN MANAGEMENT ON CUSTOMER SATIFACTION

Abstract

In this era whereby, the rising of Information Communication Technology (ICT) has changed the phenomenon in supply chain management (SCM). Nowadays, SCM is depending on ICT since everything in the process in the supply chain have to use ICT to transport goods or services from the point of origin to the point of consumption. As a result, the supply chain concept appears when the ICT revolution helped the process of integration between suppliers and customers. Supply Chain Management can be defined as the management that organize the flow of the goods and services including the storage of the material or goods and work in process of inventory. Furthermore, SCM also can be defined to monitor supply chain activities such as planning, design, execution and control the goods in the process with the objective to provide the highest level of customer satisfaction at the lowest possible cost. SCM includes managing and integrating these movements both inside and among companies. The development in the supply chain sector has made a big impact to the world and society. In addition, in the administrative foundation of supply chain management has changed the relationship between the supplier and customer, whereby SCM itself moved towards more collaboration and coordination for the strategy and the formation of the supply chain. Suppliers who the one has responsibility regarding inventory control. The importance of existing supply chain has started when the development of scientific revolution takes big roles in this world including management itself. In the era of scientific revolution with great development in technology, supply chain becomes necessary, whereby SCM processes become a significant component in the company efficiency and success.