Explain and describe two (2) areas or ways you feel supply management contributes to meet organizational success.

1. Cost Reduction: Supply management professionals work with vendors to secure the best possible prices for products and services while ensuring the quality of those goods and services meets organizational standards. By using supply chain optimization techniques such as value analysis, negotiations, and contracts, organizations can reduce costs throughout their entire supply network. This in turn increases operational efficiency, which leads to greater profitability and a better bottom line.

2. Quality Control: The job of supply management is also to ensure that all goods and services meet an organization’s quality requirements. From sourcing raw materials to inspecting finished products prior to delivery, supply managers must be aware of potential problems that could arise in any part of the process so they can take steps to mitigate them quickly and effectively. Doing this helps maintain high-quality standards, resulting in improved customer satisfaction rates and increased loyalty from customers who appreciate reliable business practices from their suppliers or partners.