What is a primary goal of supply chain management?

A primary goal of supply chain management is ensuring product availability. This objective is crucial because it directly influences customer satisfaction and the overall effectiveness of the supply chain. When products are readily available, companies can meet demand efficiently, reducing the risk of stockouts and enhancing the purchasing experience for customers.

Supply chain management coordinates various activities—from procurement and production to inventory management and distribution—to maintain the right inventory levels at various locations. This alignment ensures that products are produced and delivered in accordance with consumer demand, leading to timely availability.

Moreover, while minimizing logistics costs and maximizing inventory levels might be important considerations within supply chain management, they do not inherently fulfill the overarching goal of meeting customer needs. Instead, these factors must be balanced with the goal of ensuring that products are available to customers when they need them. Likewise, increasing supplier turnover does not contribute positively to this goal and can lead to instability in the supply chain. Thus, ensuring product availability remains the central focus of effective supply chain management.