Final answer:
Efficient and effective supply chains improve customer fulfillment and shareholder value through technological advancements, better transport, and improved labor policies. The COVID-19 pandemic highlighted the importance of supply chain robustness, while optimal location and investment in human capital can enhance productivity and profitability.
Step-by-step explanation:
Understanding Efficient and Effective Supply Chains
Efficient and effective supply chains are crucial for improving customer fulfillment, freeing up resources, increasing return on investment (ROI) or assets, and improving shareholder value. Advancements in technology, transportation methods, and improved labor policies are key factors in remedying supply chain issues. By enhancing technology and transport, and safeguarding labor rights, companies can achieve a more robust and responsive supply chain.
Amid the COVID-19 pandemic, supply chain disruptions caused businesses to suffer from shutdowns and production slowdowns, leading to increased prices and market instability. Efficient locations near uncrowded freeways, or with access to rail or water transport, can greatly reduce costs and enhance profitability. Moreover, investing in human capital by focusing on the education and skills of the workforce can substantially increase productivity and economic contributions.
For example, a messenger company that can reduce its costs, such as when gasoline prices fall, can offer more services at competitive prices, thus expanding its supply. This connection between cost management and the ability to supply more services illustrates the importance of an efficient supply chain in driving profitability and economic growth.