A successfully implemented SCM can achieve the following objectives of:

• Profitability by driving down fixed cost by adopting flow through strategies and reverse logistics management practices
• Performance through implementing realtime visibility and event management technologies
• Partnership by rationalising the logistics network and outsourcing non-differentiating activities to partners

Integrating Supply Chain Management (SCM) into one's strategy can do away with various constraints faced by Small and Medium Enterprises.

SCM can help Indian SMEs to reduce their cost and compete aggressively in the international markets. SCM is a viable option because it aims to achieve and obtain the right products at the right place in the right quantities at the right moment at minimum costs.

The success of any business depends on the potential revenue generated from the sale of goods and services. The very purpose of supply chain management is to provide a competitive environment by minimising cost, increasing efficiency and thereby improving customer satisfaction.

"In a normal business model, procurement management, in-bound logistics, internal logistics and out-bound logistics of material becomes an important strategic decision," Srivastava said.

SCM has a direct influence on key issues like movement and storage of raw materials, work-in-progress inventory, and finished goods from point-of-origin to the point-of-consumption.

If efficiently managed, SCM may give better levels of productivity, efficiency, costs, quality and speed of operations.

Supply Chain Management is a necessity for SMEs as it can bring down their costs of capital, improve viability and speed. Efficient management of Supply Chain will give them sustainable competitive advantage in future.