Why is it important to improve supply chain?

The ultimate goal of effective supply chain management is higher profits through improved customer satisfaction and a lower cost of doing business. Profits are healthier when costs are controlled and reduced wherever possible. Operating costs go down when the costs of raw materials and production go down.

What does it mean for a firm to modernize its supply chain?

What It Entails. Assembling readily available data; using advanced analytics to understand and predict customers' and suppliers' behavior and to optimize inventory, production, and procurement decision-making; and adding some automation to revamp existing processes and introduce new ones.