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Overall, we are experiencing an unprecedented crisis earlier and we are forced to reevaluate our business processes in order to minimize and even eliminate the corresponding impacts on our businesses of the same. This article presents some of the points on "how the processes of supply chain management can positively affect the profitability."

There are two components involved in increasing the real value of the financial profitability of a business:

• Cost reduction, and;
• Increased Revenue.

As the Supply Chain Management component affects the "cost reduction"? How does it affect the "revenue growth"? What variables are involved? How to outline a plan of action?

COST SAVINGS:

The "Supply Chain Management" affect component "cost reduction" by various factors. Among these factors, we can consider as major:

• PROCESS MANAGEMENT: Search for "Best Practices" of the market and apply them in management of the supply chain, making them efficient, that is, by doing them with excellence, without loss or waste (time, money or energy ), reaching the goal, producing the specific purpose, quality, competence, and with no or with minimal error, reducing considerable costs;
• GOODS AND RESOURCES: To evaluate the best way of how, when and in what quantity the goods and existing resources should be used, reducing the amount of working capital management activities for the supply chain. In short: "make or do more with fewer resources while it delivers what the customer what he wants";
• INVENTORY: Develop accurate forecasts of demand, reducing unnecessary stock, reducing the amount of working capital applied and eliminating transportation costs related to this reduction.

INCREASE IN SALES:

A company that has excellence in managing their supply chain certainly cause a positive impact on your bill.

The customers of this company will consider that:

• Received the product they wanted, when wanted, the way they wanted and affordable;
• They were not disappointed;
• They have the feeling of "special treatment".

The result is the retention of existing customers and a better response in obtaining new customers due to the combination of characteristics that are unlikely to be "replicated" by competitors in the short term. Characteristics are obtained mainly by:

• BETTER FINANCIAL AND OPERATIONAL PLANNING: obtained through the constant improvement of sales forecasts and a more accurate profile of its operating capacity;
• A MINOR "LEAD TIME" IN DELIVERIES;
• GREATER AVAILABILITY OF SERVICES;
• A SERVICE OF MORE EFFICIENT CUSTOMER SERVICE;
• ESTIMATED DELIVERY RELIABLE;
• MAJOR PARTNERS COLABORATIVIDADE SUPPLY CHAIN: through better evaluation of the data shared between the parties involved.

HOW TO FIND THE BEST CONDITIONS TO ACHIEVE ITS OBJECTIVES AND AS PART OF THE FINANCIAL "SUPPLY CHAIN ​​MANAGEMENT" PARTICIPATING IN THIS PICTURE?

Two ingredients are essential:

1) Identify the processes "key" within the supply chain that point to a real difference in cost, improve them and use their advantages to satisfy more customers;

2) Breaking paradigms and distribute the "know how" these best practices for companies involved in business, example: you have developed an improved process for the creation of proposals, decision and order management. Why not share that knowledge with their customers and suppliers "key"?

The result is that the concept of "added value" will flow across the enterprise and across its supply chain.

The financial component of the "Supply Chain Management" becomes not only a way of reducing costs, but also an excellent way to SUCCESS, which is good for her:

• Customers;
• Shareholders;
• Employees, and;
• Partners.