Supply Chain Management and its effect on company's performance

Supply chain creates value for customers by coordinating activities of all participants. However, most companies try to minimise its own inventory. Without following the supply chain concept, companies could still be efficient by adopting standard inventory control methods. One can use financial measurements to test the performance of all companies. The study attempts to measure such performance by analysing financial statements. Eleven companies from each group those which claim to have supply chain processes and those without supply chain processes were selected. The results show that companies that adopted supply chain processes were more profitable that those that did not.